Sri Lanka must urgently explore alternative oil and gas procurement routes rather than remain dependent on the Strait of Hormuz, a veteran maritime executive has told President Anura Kumara Dissanayake.
Captain A.B.C. Cashmere, Chairman and Managing Director of 8 Nautical Marine (Pvt) Ltd., has sent a written proposal to the President offering to help the government diversify its energy sourcing strategy as the Middle East conflict continues to disrupt global shipping lanes.
In his letter, Cashmere noted that while around 20% of the world’s oil and liquefied natural gas passes through the Strait of Hormuz, the remaining 80% is sourced from other regions. He said his company has the global contacts and technical expertise to help Sri Lanka secure supplies from conflict-free markets, particularly in Europe.
Cashmere, who claims 38 years in oil and gas transportation, attributed the current crisis to geopolitical instability in West Asia combined with the country’s inadequate strategic storage infrastructure. He said he had attempted to facilitate oil shipments to Colombo and Galle in 2015 and 2016 but encountered bureaucratic obstacles.
The maritime executive cited decades of work with oil tankers, refineries and international shipping operations through offices in Slovakia, Chennai and Colombo, with a planned expansion into the Netherlands. He has requested an audience with the President to present a comprehensive long-term energy procurement plan.
The proposal lands as Brent crude prices jumped 6.4% to $96.13 on Monday morning Asian trading after Iran signalled it would not attend talks in Islamabad and the US seized an Iranian-flagged cargo ship in the Gulf of Oman. Ceylon Petroleum Corporation has in recent weeks paid premiums of $48-50 per barrel on diesel shipments — up from $3 before the conflict — due to Hormuz-related risk pricing, according to Sunday Times reporting.
Sri Lanka’s only permanent national fuel storage sits at Kolonnawa and Muthurajawela with a combined capacity of about 150,000 tonnes. A Rs. 30 billion expansion is planned but is not expected to come online until January 2028.
