Sri Lanka to Forge Energy Hub with India and UAE
Deal News | Apr 25, 2025 | Zawya
Sri Lanka is set to initiate talks with India and the United Arab Emirates next month to develop a strategic energy hub in Trincomalee. This agreement was solidified during a visit by India's Prime Minister Narendra Modi, marking his first trip to the island nation. Positioned as a gateway to recovery from a severe financial crisis, the project will feature the construction of a multi-product pipeline and bunkering facilities, along with the enhancement of a World War II-era storage tank farm, partially owned by the Sri Lankan subsidiary of Indian Oil. In late May, representatives from Ceylon Petroleum, Indian Oil, and AD Ports are scheduled to convene in Sri Lanka to finalize a detailed business plan. The project represents a significant step towards energy cooperation in the region and follows a recent agreement with Chinese firm Sinopec to establish a $3.2 billion refinery in Hambantota.
Sectors
- Energy
- Infrastructure
Geography
- Sri Lanka – The primary location for the energy hub project and central to discussions on energy cooperation.
- India – A key participant in the energy hub development, represented by Indian Oil, and involved in strategic discussions with Sri Lanka.
- United Arab Emirates – Involved in the energy hub initiative, represented by AD Ports and part of regional cooperation efforts.
- China – Not a direct participant in the Trincomalee hub project, but involved through Sinopec's investment in a refinery in Hambantota, Sri Lanka.
Industry
- Energy – The article focuses on the development of an energy hub, involving oil infrastructure and international cooperation in the energy sector.
- Infrastructure – This involves the construction and enhancement of pipelines, bunkering facilities, and storage farm facilities.
Financials
- $3.2 billion – Investment by Sinopec in a new oil refinery in Hambantota, Sri Lanka.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Sri Lankan Government | Initiator | Government | Leading the initiative to develop the energy hub in collaboration with India and UAE. |
| Indian Government | Participant | Government | Involved in the strategic alliance for the energy hub, represented through Indian Oil. |
| United Arab Emirates Government | Participant | Government | Part of the regional cooperation through AD Ports involvement in the energy hub project. |
| Indian Oil | Participant | Company | Involved in the energy hub project, particularly with interests in the storage tank farm. |
| AD Ports | Participant | Company | Participating in discussions to develop the energy hub in Trincomalee. |
| Ceylon Petroleum | Participant | Company | State-run enterprise leading the energy hub development with Indian and UAE counterparts. |
| Sinopec | Foreign Investor | Company | Chinese state energy firm involved in a separate $3.2 billion refinery project in Hambantota, Sri Lanka. |
| Narendra Modi | Prime Minister | People | Prime Minister of India, who visited Sri Lanka to solidify the energy hub agreement. |
| Anura Kumara Dissanayake | President | People | President of Sri Lanka, overseeing the inception of the energy cooperation plan. |
| Sheikh Abdullah Bin Zayed Al Nahyan | Deputy Prime Minister and Foreign Affairs Minister | People | Representing UAE in the strategic energy discussions in Sri Lanka. |