Laos State Fuel Company to Purchase Fuel from Xieng Khouang Refinery

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Laos oil refinery in Xieng Khouang Province

As fuel shortages worsen, the Lao State Fuel Enterprise has signed a purchase agreement with an oil refinery in Xieng Khouang.

Mr. Sisangkhom Khotyotha, Director of the Lao State Fuel Enterprise, and Mr. Somvang Khulurat, Director of the Yodngeum Power Mix Fuel Factory, signed the purchase agreement yesterday in the presence of provincial officials.

The signing ceremony purchasing fuel

According to Mr. Somvang, the refinery in Pek District, Xieng Khouang Province, produces 10 million liters of diesel per month and can produce up to 30 million liters as if necessary. 

He stated that the refined petroleum products will be ready for distribution by the end of May.

Instead of importing from Thailand, the factory has been purchasing crude and refined oil from Nghi Son Refinery in Vietnam, which is only 318 kilometers away.

“Oil will be stored in Luang Prabang before distribution to the northern provinces by Lao State Fuel Enteprrise,” said Mr Somvang.

“We plan to expand into the central and southern provinces in September this year,” he added.

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