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Laos, Vietnam discussing fuel supply pipeline

Xinhua, November 29, 2016 Adjust font size:

Lao and Vietnamese governments have expressed their full support for the construction of a pipeline that would deliver fuel from Vietnam to Laos, reported local Vientiane Times on Monday.

The survey, design and feasibility study of the proposed pipeline have been ongoing for several years. Vietnam's Minister of Transport Truong Quang Nghia last week met with Lao Minister of Public Works and Transport Bounchanh Sinthavong in Lao capital Vientiane to update him on the progress in preparations for the pipeline with a view to keeping the project on track.

The project would involve the building of two pipelines about 306 km in length to carry diesel and petrol from a wharf at the Hon La coastal port in Vietnam's central Quang Binh province to Lao central Khammuane province.

A warehouse to store the fuel would be built at Nhommalath district in Khammuane province, which borders Quang Binh province, some 350 km southeast of Lao capital Vientiane.

The government would require the investor in the project, Lao Petro Company, to be responsible for the survey and construction of the pipeline, said Vientiane Times, adding that the government will not provide funding for the project, but fully supports construction of the pipeline.

It is expected that the results of these project components will be presented to the Lao government at the end of 2016 to request authorization to proceed, following which construction will begin if permission is given.

It is hoped that fuel prices in Laos will be lower once the pipeline is in place as it is envisaged that the pipeline would cut the cost of transporting oil products and ensure energy security for Laos. It will also boost bilateral trade between Laos and Vietnam, as well as stabilize and develop the Lao energy industry, said the report.

The project will include a wharf for vessels with capacities of some 50,000 tons, a 306 km-long oil pipeline and four pumping stations, and a warehouse with a storage capacity of 100,000-200,000 cubic meters. The warehouse at Vietnam's Hon La port is expected to be capable of storing 300,000-500,000 cubic meters of fuel products. Endit