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99-year lease of Hambantota port to China ‘a mistake’, says President

Newly elected President of Sri Lanka intends to renegotiate lease and produce better deal with China.

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The 99-year lease of Hambantota port to China, a development signed during the previous government, is “a mistake”, according to the newly elected 7th Executive President of Sri Lanka.

Gotabaya Rajapaksa is the winner of the 2019 Presidential Election and was sworn in as the 7th Executive President of Sri Lanka on 18 November at Anuradhapura.

He was giving an interview to local publications BharatShakti.in and Strategic News International Journal during an earlier date when he said the arrangement will have to be renegotiated.

“And even though China is a good friend of ours and we need their assistance to develop, I’m not afraid to say that was a mistake. I will request them to renegotiate and come with a better (deal) to assist us,” explained Rajapaksa.

“Today the people are not happy on that deal, we can think of one year, two years, five years, we have to think of the future, what will happen? So giving a small land for investment is a different thing.

“To develop a hotel or a commercial property is not a problem, that’s not an issue. The strategically important, economically important harbour, giving that is not acceptable.

“That we should have control. We have to renegotiate. Giving a terminal for an operation is a different thing, giving some location to build a hotel is different, not the control over a very important place, it is not acceptable. So that is my position.”

Under the previous government, Sinopec Group in early November confirmed plans to invest in bunkering operations at Hambantota by incorporating a company in Sri Lanka named Sinopec Fuel Oil Lanka (Private) Ltd.; the firms has made an application for a bunkering license to carry out operation at the port in Q4 2019.

Meanwhile, an affiliate company to Singapore-based petroleum and coal trading company Sugih Energy International Pte Ltd has proposed the construction of a 420,000 barrels/day capacity petroleum refinery to transform Hambantota port into a bunkering location.

“And we want to work with China as well. Diplomatic relations and economic relations are everywhere. India is working closely with China. I know Indian investment goes to China, Chinese investment comes to India. Like that, we want investments and help but we will not do anything, we don’t want to get involved in military and geopolitical rivalry,” Rajapaksa adds.

“The other thing that I want to tell the world powers like India, Singapore, Japan, Australia, you know, the reality is they are scared of Chinese involvement, that’s a reality. But in our point of view it is commercial. We are a small country and we want foreign investment to improve our economy.

“So I invite India, Singapore, Japan and Australia to come and invest here. Don’t allow only China to invest. These governments must encourage their private companies to come and invest, come and help us. Without leaving it to one country and then grumbling.”

Related: Singapore-based Sugih Energy proposes oil refinery at Hambantota
RelatedSri Lanka embassy confirms Sinopec bunkering plans at Hambantota
RelatedSinopec establishes fuel oil sales unit at Hambantota, Sri Lanka
RelatedSinopec to provide marine fuels and bunkering at Hambantota

Photo credit: Presidential Secretariat of Sri Lanka
Published: 27 November, 2019

 

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Biofuel

BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

Bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier “Berge Lyngor”, which was bunkered in Singapore in early May.

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BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

BHP and the Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (3 June) said they have blended biofuels from two distinct feedstocks—used cooking oil and waste animal fats —and introduced the lower-emissions marine fuel into a BHP-chartered bulk carrier as part of a pilot project.

The bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier Berge Lyngor, owned and operated by Berge Bulk, transporting BHP iron ore from Western Australia to China. When run on bio-blend, the vessel has the potential to reduce well-to-wake greenhouse gas emissions by approximately 79 per cent per voyage compared to sailing on very low sulphur fuel oil (VLSFO).

The vessel bunkered in Singapore in early May with a B100 bio-blend comprising 50 percent tallow-derived biodiesel, sourced and supplied by HAMR Energy, and 50 per cent used cooking oil (UCOME) supplied by Mitsui & Co Energy Trading Singapore (METS).

Mitsui also blended the fuel and Dan-Bunkering coordinated and executed the bunkering operation, which was performed by Global Energy’s barge MT Maple.

The BHP and GCMD pilot will assess how biofuels from multiple feedstocks can be blended, handled, and introduced under real-world operating conditions using existing used cooking oil bunkering infrastructure.

At the same time, insights from this pilot will help identify solutions to challenges related to fuel quality, handling, traceability, and onboard vessel performance.

Biofuels for global shipping today rely heavily on used cooking oil – a feedstock whose availability is approaching its projected limits. Biofuel from waste animal fats presents a promising option to expand the supply of lower-emissions marine fuels.

The outcomes of the pilot are expected to shed light on the practical steps to integrate biofuel blends from different feedstocks into existing supply chains. The diversity of biofuels will provide shipowners and operators with greater flexibility to optimise fuel procurement based on cost, availability, and lifecycle emissions performance.

Biofuels derived from different feedstocks can exhibit varying properties that may impact operations, including potential corrosion from oxidation, fuel system clogging caused by wax formation, which this pilot aims to assess.

The pilot will trace and verify the biofuel blend’s integrity aimed at bolstering confidence in emissions reductions reporting. The pilot will also provide insights into how robust tracing can support future marine fuel supply chains where biofuels from multiple feedstocks with varying lifecycle greenhouse gas emissions footprints are blended together.

This project is co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund (MINT).

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 3 June, 2026

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Biofuel

NYK starts one-year B100 bio bunker fuel trial on car carrier

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices.

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NYK starts one-year B100 bio bunker fuel trial on car carrier

Japanese shipping firm NYK on Tuesday (2 June) said it has commenced a one-year long-term trial involving the continuous use of 100% biofuel (B100) on an NYK-operated car carrier. 

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices. High-purity biofuels such as B100 are known to be susceptible to degradation from oxygen, light, and heat, raising concerns about the stability of such fuels during long-term use.

In this trial, the biofuel primarily comprises FAME (Fatty Acid Methyl Ester) derived from used cooking oil and similar feedstocks.

The initiative is designed to evaluate the fuel’s effects on the vessel’s equipment and verify operational safety under real-world conditions. 

Through this effort, NYK seeks to accumulate technical expertise that will support the broader use of high-purity biofuels and further accelerate efforts to reduce greenhouse gas (GHG) emissions.

NYK has been advancing the use of biofuels through various initiatives. In 2024, the company conducted a trial using biofuel blend B24 and subsequently expanded practical usage to B30. However, the company said there remains limited global experience with the long-term continuous use of B100.

“By collecting long-term operational data through this trial, NYK aims to accumulate valuable technical insights to support both the safe operation of vessels and the wider adoption of high-purity biofuels,” it said. 

 

Photo credit: NYK
Published: 3 June, 2026

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Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

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VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes. 

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

 

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

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