A bilateral meeting between Laos (left side) and Vietnam on an oil depot and pipelineconstruction project, Vietnam, Mar 4
(KPL) Laos and Vietnam recently discussed a construction project for an oil depot and pipeline connecting Vietnam’s Hon La Port to Khammuan Province.
The discussion took place during a visit to three provinces of Vietnam including Quang Binh, Ha Tinh and Quảng Trị from March 4-6 by Minister of Planning and Investment Souphan Keomyxay, and Minister of Public Works and Transport Bounchan Sinthavong.
The objective of the visit was to meet with Deputy Minister of Vietnam Planning and Investment Nguyen The Phuong, and Deputy Minister of Vietnam Public Works and Transport Le Dinh Tor, to ask if the Vung Ang Port (Berth No.1, 2 and 3) could be used as a logistics centre for the loading and shipping Laos’ goods.
The two sides agreed to set up a technical team to discuss how to cooperate and use the seaport, which is expected to be operational at the end of this month.
The construction of the Vietnam-Laos oil pipeline is a cooperation project of the governments of Vietnam and Lao and will be the sole investment of the Lao government. The pipeline is set to be constructed from Hon La Port (Quang Binh) to Khammouane (Laos).
The report on the project came from research done by local authorities seeking to take advantage of Vietnam's coastline that is more than 3,200 km long. The distance from Laos to the seaport in Vietnam is short and will reduce the cost of transport and be a more convenient way to ensure energy security in Laos.
When these pipelines are operational, the project will contribute to boosting trade between Vietnam and Laos, as well as ensure the stability and development of the Lao energy industry. It is expected that the bonded warehouses of this project will be constructed in the Hon La Seaport Industrial Zone on an area of 37.45 ha.
The total investment capital is about US$300 – 500 million. The portfolio will consist of bonded warehouses at the Hon La Port with scale and capacity of about 300,000 – 500,000 cubic meters, to be used for the re-export of gasoline to Laos.
The system of the soft bridge port (transshipment and moorings) is used for vessels of 50,000 tons or more to port.