In a key move set to bolster Sri Lanka's petroleum sector, the Ceylon Petroleum Storage Terminals (CPSTL) has forged an agreement with renowned US-based petroleum products distributor 'Shell-RM Parks'. The signing ceremony took place on February 12th.

The agreement, inked at the CPSTL Head Office, outlines provisions for the storage and distribution of fuel across Sri Lanka. Under this arrangement, CPSTL gains the capacity to store and distribute 'Shell-RM Parks' petroleum products, promising enhanced accessibility and reliability for consumers nationwide.

This partnership stems from a broader initiative initiated by the Government of Sri Lanka last year. On June 8, 2023, a landmark agreement was struck between the Sri Lankan government and RM Parks Inc., in collaboration with industry giant Shell Plc. This long-term contract aimed to revolutionize the importation, storage, distribution, and sale of petroleum products within Sri Lanka's borders.

According to Sri Lanka's Minister of Power and Energy, Kanchana Wijesekera, "US-based petroleum company RM Parks, in collaboration with Shell PLC, signed the agreement to enter the Sri Lanka petroleum business. RM Parks will be the 4th supplier to enter the domestic market and will operate under the Shell branding." The agreement, spanning a period of 20 years, envisages the importation, distribution, and sale of petroleum products through a network of 150 fuel stations allocated from the Ceylon Petroleum Corporation (CPC).

In a further testament to the growing ties between RM Parks Inc., Shell PLC, and Sri Lanka, a subsequent agreement worth USD 110 million was reached on November 21. This agreement, signed with the Board of Investment (BOI) of Sri Lanka, aimed to facilitate the introduction of Shell PLC products to the island.