Laos-Vietnam Oil Pipeline Project Expected to Go Ahead


The Laos-Vietnam oil pipeline project is an ambitious plan to import diesel and petrol fuels to Laos from Vietnam by way of a 306km pipeline.

The project will involve construction of two pipelines, as well as pumping stations and warehouses. A bonded warehouse in Hon La Harbor, Vietnam, will store some 500,000 cubic meters of fuels, according to Tuoi Tre News.  Khammouane Province is also to host a smaller oil warehouse in Thakhek.

Hon La and Thakhek were chosen for transportation of oil via the proposed pipeline due to the relatively short distance between Vietnam’s Quang Binh Province and Laos.

A refinery will be constructed in Laos which can process unrefined fuel imported through the pipeline. This is said to reduce costs as the global price of crude oil is currently quite low.

The governments of both Laos and Vietnam have fully supported the project, and a feasibility study should be complete next month.

Minister of Energy and Mines, Dr Khammany Inthilath, has stated that there are numerous investors who have expressed interest in the US$ 500 million project, which was originally to be solely an investment by Lao Petro Company. It is expected that the Lao State Fuel Company will join the venture.