Sri Lanka’s state-owned Ceylon Petroleum Corp., the country’s sole importer of fuel oil, has made a rare export offer of the product due to falling demand from power stations as well as higher domestic output, company sources said Friday.
“We have had a lot of rainfall over the last few months and power stations have now switched to hydropower instead of burning fuel oil,” said Ceypetco commercial manager C.P. Samaraweera.
Demand from Ceylon Electricity Board, the sole buyer of fuel oil for supply to the country’s utilities, has fallen by over 25% to 3,150 mt/d currently, said a source at Ceypetco’s sole refinery.
CEB used to buy 4,250 mt/d of fuel oil — comprising 2,500 mt/d of 180 CST high sulfur fuel oil with maximum 3.5% sulfur, 1,000 mt/d of 180 CST low sulfur fuel oil with maximum 1.8% sulfur and 750 mt/d of heavy fuel oil with maximum 3.5% sulfur — when domestic utilities relied only on burning fuel oil, said the refinery source.