New Oil Refinery Awaits Government Approval to Start Operations

0
3068
Lao-China Oil Refinery in Xaysetha Special Economic Zone.

Lao-China Oil Refinery has not started its oil distribution as the price structure is not approved by the government yet.

Minister of Energy and Mines, Mr. Davong Phonkeo, visited Lao-China Oil Refinery recently and reported that in its initial phase the refinery will generate 1 million tons of oil a year, and when construction is complete it will produce a total of 3 million tons.

The first oil refinery in Laos was expected to commence experimental fuel production in November last year.

However, the company has not yet distributed the generated oil and is waiting for the government’s approval.

Mr. Wang Deng Tao, Deputy Director Lao-China Petroleum Public Company Limited, said that the refinery’s construction is divided into 3 phases, and the building of the first refinery is now complete.

According to the plan, it will take about 10 years to complete the development of the second and third phases of the projects.

On this occasion, the minister congratulated the company for commencing its operations after the construction of the first phase, which was completed according to plan.

The oil refinery is a joint venture between the Lao-China Petroleum Public Company Limited and Yunan Construction Company Group (YCIH), which located in Saysettha Special Economic Zone with a registered capital of USD 36,960,000.