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Vietnam Lao oil pipeline to be constructed

Fri, 24 Oct 2014. Last updated Thu, 25 Jun 2015 08:53

Vietnam Lao oil pipeline construction is a project of Vietnam and Lao government cooperation with total investment capital from Laos. The oil pipeline will be constructed from Hon La Port (Quang Binh) to Khammouane (Laos).

On Oct 22, in Quang Binh Province, Lao Petrol Joint Stock Company (PetroLao) has signed a consulting contracts with Energy Commodities (Slovakia) on feasible reported of a project on "Construction of bonded warehouses and oil pipelines from Hon La Port (Quang Binh-Vietnam) to Khammouane Province (Laos). There is also a contract of a consultant legal procedures with the Association of Vietnam investors in Laos (AVIL) signed. Vietnam oil pipeline project from Hon La Port to Khammouane Province is 100% of the project's investment capital from the Lao government and businesses. PetroLao is assigned by the Lao government to coordinate parties and implement the project.


A corner of Hon La Port in Quang Binh


Based on Decision No.109 issued on Oct 2nd 2014 by Lao Prime Minister, PetroLao will be investor of the project "Construction of bonded warehouses and oil pipeline from Vietnam to Laos". PetroLao and Energy & Commodities (EC) have exchanged negotiations, and reached a consensus to sign a contract of survey, research and report investment project. Under the contract, Energy & Commodities plays its role in implementing survey, evaluation and feasibility report of the "Construction of bonded warehouses and oil pipelines from Vietnam to Laos” project. To support the implementation of this project, the governments of Vietnam and Laos also agreed to assign AVIL to coordinate with PetroLao to implement legal procedures in Vietnam, as well as consulting during the report of project's investment and arrangements, selections of financial institutions, reputable businesses involved in the project.


Representatives of AVIL and PetroLao


The research report of the project comes from the grassroots of taking advantage of Vietnam's coastline that is more than 3,200 km long, and the distance from Laos to Vietnam seaport is short, which creates a convenient way. The project on building Vietnam oil and gas pipeline to Laos will contribute to the reduction of delivery cost as well as ensure energy security in Laos. When these pipelines are operated, the project will contribute to boosting Vietnam and Laos trade, along with ensuring the stability and development of Lao energy industry. It is expected that the bonded warehouses of this project will be constructed in Hon La Seaport Industrial zone on an area of 37.45 ha. The total investment capital is about US $300 – 500 million. The portfolio consists of bonded warehouses at Hon La Port with scale and capacity of about 300,000 – 500,000 cubic meters, used for the purpose of re-exports gasoline to Laos.

The system of soft bridge port (transshipment and moorings) is used for vessels of 50,000 tons or more to port. The Vietnam Lao oil pipeline is 290km long. It is expected to be built from Hon La Port to Thakek District of Khammouane in Laos. The system consists of 4 pump stations and intermediate storage. Approaching storage in Khammouane includes a series of warehouses with the capacity of 100,000-200,000 cubic meters. Contract of consulting feasible report of the project "Construction of bonded warehouses and oil pipeline systems from Hon La to Khammouane" is expected to be completed within 9 months. According to the plan, up to the Quarter IV in 2015, the project will be started. Duration of the project is within 30 months. From late 2017 to early 2018, the project will go into operation. On this occasion, the Energy Commodities signed a consulting contract with Truong Thinh Joint Stock Company, an implementing partner of Vietnam side.

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