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Laos plans faster feasibility study for proposed Vietnam oil pipeline

An infrastructure agreement was signed on October 8, but technical assessments and investment arrangements are still needed before construction can start.

By Nadia Hassan

Fuel storage tanks connected by industrial pipes
Illustration: Asean Coverage

Laos plans to speed up a feasibility study for an oil pipeline linking it with Vietnam, Prime Minister Saleumxay Kommasith told the National Assembly. He said construction would require at least two to three years after work begins, though no start date has been announced.

The proposal calls for a pipeline running from a port in Vietnam to the border with Laos, supported by nearby fuel depots. Saleumxay said it would lower transport costs and make larger, steadier fuel supplies available to Laos while reducing reliance on road deliveries.

The two governments signed a memorandum of understanding covering oil supply infrastructure on October 8, during talks in Vientiane between Saleumxay and Vietnamese Prime Minister Le Minh Hung. The pipeline is still subject to feasibility work, with technical assessments and investment arrangements required before building can begin.

The leaders also agreed to advance other transport connections, including the Hanoi-Vientiane Expressway, Vung Ang seaport and a railway connecting the port with Vientiane.

Saleumxay outlined a wider fuel-security plan that includes reserves of about 60 million litres or more. The government intends to encourage importers to draw supplies from several countries, including Vietnam, China and Singapore, and add storage capacity across northern, central and southern Laos.

Other planned steps include stricter checks on importers and distributors to tackle hoarding and price gouging, alongside requirements for adequate reserves and regular stock reporting. Laos will also explore emergency fuel-stockpiling cooperation with ASEAN countries to prepare for supply disruptions.

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