Laos Oil Refinery in Xieng Khouang to Begin Production Soon

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Laos oil refinery in Xieng Khouang Province

Laos’ new oil refinery in Xieng Khouang Province will begin processing crude oil in the coming months.

The refinery, located in Pek District, Xieng Khouang Province, has a storage capacity of 2,400,000 liters and will be able to produce 100 million liters of petroleum products per year, Lao Economic Daily reports.

The refined petroleum products are expected to be distributed through the Lao State Fuel Enterprise, according to Vice President of the Yodngeum Power Mix Fuel Factory, Outhan Tailathi.

Mr. Outhan spoke during a visit to Xieng Khouang Province last week by Minister of Industry and Commerce, Dr. Khampheng Xaysompheng, saying that construction of the refinery commenced in September 2021, and is now complete.

Minister of Industry and Commerce, Dr. Khampheng Xaysompheng visits the oil refinery.
Minister of Industry and Commerce, Dr. Khampheng Xaysompheng visits the oil refinery.

The construction project was valued at over LAK 30 billion.

Some 60 percent of production will see refined diesel oil, as well as 39 percent light diesel oil production, with one percent of production devoted to processing chemicals imported from Vietnam and Thailand, said Mr. Outhan Tailidthi.

“The factory will produce and process diesel, as well as importing gasoline for distribution within the province and export to nearby provinces,” Mr. Outhan Tailidthi added.

The first oil refinery in Laos was built in Saysettha Development Zone in 2015 and began experimental fuel production in November 2020.