Under the agreement reached with the US-based company 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