The Lao government is keen on starting such a venture to reduce its dependency on imported fuels.
Laos has embarked on a 12-year biofuel production project costing USD 20 million, which will enable the country to produce 500,000 liters of biogasoline a day, which will amount to 12.5 million liters a month. In the first year, the monthly production will be around 10 million liters per month and this amount will rise by 20 percent next year.
The Lao State Fuel Company signed an agreement with GAIA Petro Co., Ltd. of the Republic of Korea to kickstart the project which would be based out of Dongphosy village in the Hatsaifong district of Vientiane capital.
The Lao State Fuel Company will own 22.5% shares of the company, 22.5% will be owned by local investors and 55.5% would belong to GAIA Petro Co., Ltd.
With this initiative Laos has now joined the list of many other countries that have been looking at developing their own fuel resources to tackle any shortage or financial difficulties arising from a global rise in oil prices. As an energy source, biogasoline is cheaper, more ecofriendly and this project would also positively impact the country’s economy and the lives of its people.