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A US-based company has reached a principle agreement to lay a new fuel pipeline between Colombo Port and the Kolonnawa terminal ahead of the signing agreement to begin its retail fuel distribution in Sri Lanka.

Under the agreement, RM Parks-Shell Company will make an initial investment of US$ 50 to 60 million for the project which is expected to begin after it enters into the retail fuel distribution business.

The new pipeline will replace the existing line which has experienced several leaks over the past few years.

In addition to the laying of the pipeline, the company will install fenders in the jetty replacing tyres which are used to prevent the collision of vessels and also invest in a fire control system in the harbour.

The company is set to sign an agreement this month to enter the fuel distribution business in Sri Lanka and begin operations in June.

Power and Energy Minister Kanchana Wijesekera has held an online meeting with RM Parks-Shell Company to discuss agreements, policy, logistics and timeline to begin operations in Sri Lanka.

The company’s technical officials recently visited the Ceylon Petroleum Storage Terminal Limited (CPSTL) tank farm.

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