The first oil refinery in Laos is expected to commence experimental fuel production on 30 November.
According to a report in KPL News, the factory is the first oil refinery to be built in Laos, aimed at producing up to one million tons of gasoline, diesel, and gas per year.
Deputy Director of Lao Petroleum Chemical Company Limited, Mr. Pany Phuangpheth, says the oil refinery is a joint venture between the Lao-China Petroleum Public Company Limited and Yunan Construction Company Group, which hold shares at 75 percent, while a 20 percent stake is held by the Lao State Fuel Enterprise, and 5 percent is under the Lao-China Joint Venture Company.
The oil refinery commenced construction in 2015 at the Saysettha Development Zone in Vientiane Capital, over 280,000 square meter, and is valued at USD 179 million, according to Mr. Pany.
Raw materials will be imported from Singapore, while domestic fuel production is expected to reduce Laos’ reliance on fuel imports, with the added effect of reducing the domestic price of oil.
“Our company is likeyl to face some challenges entering the market and will need to work hard to ensure that we can compete with imported fuels,” said Mr. Pany.
Located near the city center, Lao Petroleum Chemical Company Limited will ensure it properly manages environmental and safety concerns, controlling emissions and using modern distillation methods.
The refinery has so far created 400 jobs.