Chinese and Lao representatives attend the inauguration ceremony of the refinery's first phase production in Vientiane, Laos, Nov. 30, 2020. Lao Petroleum & Chemical Co. Ltd (Laopec), a China-Laos joint venture, has launched first phase production of its three million tons/year refinery project in Lao capital Vientiane on Monday. (Photo by Kaikeo Saiyasane/Xinhua)

 
China and Laos have jointly developed an annual 3-million-ton oil refining project backed by $2 billion investment, filling a gap in the Laos petrochemical sector, according to media reports.

Yunnan Construction and Investment Holding Group, which is stated-owned and based in Southwest China's Yunnan Province, neighboring Laos, and Lao State Fuel Company commenced phase-one operations with an estimated annual refining capacity of 1 million tons per year. 

The project, launched by Lao Petroleum & Chemical Co (Laopec), a China-Laos joint venture, is comprised of three phases, centered on Vientiane, capital city of Laos, in total covering 28.33 hectares. The project leverages world-leading environmentally friendly technology.

The phase-one project meets Euro V standards for producing gasoline, diesel, liquefied petroleum gas, jet fuels and industrial grade sulfur, providing safe and stable refined oil products for the local market. 

Laopec will make efforts to protect Laos' rich agricultural resources which include cassava and palm in a bid to develop the local biofuel and clean energy industry, drive agricultural sustainability, and promote renewable energy. 

"This petroleum refinery project will help reduce fuel imports and cut oil prices throughout the domestic market," said Khemmani Pholsena, Lao Minister of Industry and Commerce, at the facility's opening ceremony, Xinhua News Agency reported.

Global Times