Yodngeum Power Mix Fuel has signed a purchase agreement with the Lao State Fuel Enterprise pledging to provide the latter 10 million liters of diesel every month.
The agreement was signed in Vientiane on May 11 between Director of Yodngeum Power Mix Fuel Somvang Khulurat and Director of the Lao State Fuel Enterprise Sisangkhom Kotyotha.
“Our oil refinery in Yodngeum village, Pek district, Xieng Khuang Province is expected to refine 100 million litres of oil on an annual basis,” said Mr. Somvang Khulurat.
The 30-billion-kip refinery, the construction of which commenced in September 2021, is now fully completed and expected to launch its commercial production by the end of this month, according to the director of the company.
“Yodngeum Power is ready to provide diesel that is much needed in the country at the moment. The rising oil prices in the world market are posing direct impacts on our economy as an importing country.”
With a storage capacity of 2.4 million litres of oil, the refinery can process 100 million litres of petroleum products per year by mixing finished diesel with semi finished oil and certain chemicals in ratios of 60%, 39% and 1%, respectively.
The company will also import gasoline to supply in Xieng Khuang and neighboring provinces through the Lao State Fuel Enterprise.
The refinery is located 380 km from Nghi Son port in Vietnam’s Thanh Hoa which is a shorter distance compared to that between the refinery and Thailand, another oil import market for Laos.
“We have chosen Luang Prabang as our oil distribution centre for northern provinces,” said Mr. Somvang Khulurat.
Yodngeum Power Mix Fuel is expected to launch more production facilities in central and southern provinces in September this year.
Source: Lao News Agency