Lao Petroleum & Chemical Co. Ltd. (Laopec) 3 million tons per year refining project, located in Laos Vientiane Saysettha Development Zone, with an area of 425 mu, is a joint venture between Yunnan Construction and Investment Holding Group and Lao State Fuel Company set up to respond to the "one Belt and one Road" initiative by China and Lao enterprises, to enrich the domestic energy cooperation and to enhance the economic and trade exchanges between the two countries. Laopec is responsible for the implementation of the project. The project is planned to be invested a total of USD 2 billion in three phases to build the first 3 million tons per year modern petroleum refinery project in Laos, mainly engaged in petroleum refining, fine chemicals, clean energy and the production, storage, sales, and logistics of other chemical products and related businesses.
The project is an early outcome of the Action Plan of China-Laos Community of Shared Future. and in April 2019, China and Laos signed the "Agreement on Jointly Promoting the Second Round of Key Projects of Production Capacity and Investment Cooperation", and the project was successfully selected as the "List of Key Projects of the Second Round of China-Laos Production Capacity and Investment Cooperation". It is the first petrochemical project in Laos and the largest industrial project in Laos at present, which represents an important achievement to enrich Sino-Lao production capacity and investment cooperation, and a practical action to build the "Community of Shared Future for Mankind" by the governments, people and enterprises of China and Laos.
The first phase of the 3 million tons per year refining and chemical project of Laopec with a comprehensive processing capacity of 1 million tons per year has been successfully put into operation on November 30, 2020. It can achieve the production of gasoline, diesel, aviation kerosene, LPG, industrial sulfur and other products conforming to Euro V standard. The completion and operation of Phase I of the project will effectively fill the gap in the petrochemical industry in Laos, change the status quo of Laos relying on import of all refined oil products, accelerate the pace of industrialization and modernization of Laos, play a positive role in promoting the sustainable economic and social development of Laos and improving people‘s living standards, and provide solid support for Laos‘ strategy of "transforming a land-locked country into a land-linked country".
Based on the completion and operation of Phase I of the project, Laopec will continue to expand the upstream and downstream of the project, extend the industrial chain, expand production capacity and gradually realize the development plan of Phases II and III of the project. The total refining capacity of the project will be increased to 3 million tons per year. At the same time, the company will fully rely on the rich cassava, palm, and other agricultural resources in Laos to vigorously develop biofuel and clean energy industries, drive agricultural cultivation and promote the development of renewable energy, which will then produce more gasoline, diesel, biofuel, as well as aviation kerosene, road asphalt, polypropylene and polystyrene and other high-quality petrochemical products to meet the growing domestic market demand and realize Laos renewable energy development strategy. It is expected to provide a strong guarantee for Laos energy security and economic growth and become an important demonstration project for the China-Lao community of a shared future.
