Lao fuel distributor to build storage facilities nationwide
Lao fuel distributor to build storage facilities nationwide
A major fuel supplier, Petroleum Trading Lao Public Company (PTL), plans to spend millions of dollars to build large fuel depots around the country in anticipation of a possible fuel shortage.
The company will build eight depots in Vientiane and the provinces of Xayaboury, Xieng Khuang, Khammuan, Savannakhet, Champassak and Saravan.
“The eight storage facilities will have the capacity to store about 200 million litres of fuel,” CEO Mr Chanthone Sitthixay said recently.
“We expect to build large depots nationwide to ensure that Laos has sufficient fuel to last for about three months if imported supplies dry up,” he said.
“We have proposed our project to the government.”
The company is currently building a large fuel depot in Vientiane and will build two more next year. It hopes to have eight large depots nationwide soon.
Once the first depot in Vientiane is built, which will cost about US$7 million to US$8 million, that will be viewed as a pilot project and “I will invite government officials to see the progress,” Mr Chanthone said.
“What we are doing is not only for profit, but will mitigate the risk of a lack or shortage of fuel if there is a downturn in the global economy or a problem occurs in a neighbouring country such that they cannot supply us with fuel,” he added.
“We reckon that at present Laos only has enough fuel in storage to last for 10 days.”
Fuel is the lifeblood of the economy so if there is a major disruption in the global fuel market or a neighbouring country, “we will have a shortage of fuel if we don't have our own storage facilities,” Mr Chanthone said.
PTL buys its fuel from an international supplier and stores it in Thailand and Vietnam where the company has large fuel depots.
The depot in Vietnam can store about 300,000 tonnes of fuel while the one in Thailand can hold about 600,000 tonnes.
The fuel is supplied to Laos and there are plans to supply it to China, Myanmar, Thailand and Vietnam where the company has representative offices.
“We buy the fuel in large quantities to ensure that we get a good price as we want to be competitive when we are in the market with other countries,” he said.
“Another issue is to ensure that we don't run any risks concerning a shortage of fuel in Laos.”
PTL is listed on the Lao Securities Exchange (LSX) and is made up of local businesspeople and is enjoying strong expansion.
PTL is ready to provide stable fuel energy to be a part of the continued development of Laos.
It imports petroleum from suppliers in neighbouring countries, mainly from Thailand.
Laos now has more than 15 fuel suppliers, according to the Lao National Chamber of Commerce and Industry.
