Deputy PM visits site of planned Viet-Lao oil pipeline
Deputy PM visits site of planned Viet-Lao oil pipeline
Construction of an oil pipeline from Hon La harbour in Vietnam's central Quang Binh province to Khammuan province will begin this year after an agreement was signed in Vietnam recently.
A warehouse to store the oil will be built at Langkhang junction in Yommalath district, Khammuan province, about 30km from the Laos-Vietnam border.
Deputy Prime Minister Somsavat Lengsavad, who is in charge of economic affairs including production and goods circulation, and the Lao project leader committee visited the two sites over the weekend.
Mr Somsavat and the committee studied the area where the warehouse will be built as well as the project construction site at Hon La harbour.
The deputy prime minister and the committee then met with Vietnamese government officials in Quang Binh province.
The Lao committee me mbers were briefed on the planning process and the progress of the feasibility study, as well as the investment plan proposed by the Lao Petro Company and the Energy Commodities Company.
The Lao and Vietnamese governments agreed to establish a subsidiary of the Lao Petro Company in Vietnam to manage the project.
They also agreed to t he use of land for construction purposes at Hon La harbour and the building of an oil pipeline across Vietnamese land.
Also discussed were the compensation to be awarded to local people for the loss of land to the project, land clearance, UXO clearance, and construction plans.
The warehouse will be built on a 37.45-hectare site at the Hon La Industrial Park in Quang Binh province, with estimated investment capital of between US$300 million (2,400 billion kip) and US$500 million (4,000 billion kip).
The project's main structures will include a wharf for vessels with capacities of 50,000 tonnes and above, a 290km-long oil pipeline and four pumping stations, and a warehouse with a total capacity of 100,000 to 200,000 cubic metres.
The warehouse at Hon La seaport is expected to be capable of storing 300,000 to 500,000 cubic metres of fuel products.
The project is expected to cut the cost of transport of oil products and ensure energy security for Laos.
It will also boost bilateral trade between Laos and Vietnam, as well as stabilise and develop the Lao energy industry.
