Sri Lanka temporarily shuts down sole refinery after pipeline damage

Sri Lanka shut down its 50,000 barrel-per-day oil refinery for a few days after damage to a floating port pipeline at the Colombo port. The damaged refinery is the only facility of its kind in the country, and repairs, while being rushed, may take a few days, as spare parts needed are being imported. Meantime, a ship with 135,000 tons of oil is forced to stay in port. Traders say that the shutdown is unlikely to have a large impact on the Asian diesel market as Sri Lanka’s gasoil demand is lower than usual due to the monsoon season.
State-run Ceylon Petroleum Corp. (Ceypetco) had sought 300,000 barrels of gasoil and 40,000 tons (about 260,000 barrels) of high sulfur fuel oil for immediate delivery, to make up for a possible shortfall caused by the temporary closure of the decades-old refinery. (September 3, 2012)