Energy, oil and gas agency proposes fuel hubs, pipeline to supply Laos

Fuel storage depots, transfer stations, and an 80-100 km pipeline in Nghe An to supply Laos, strengthen bilateral energy infrastructure and cooperation, and improve the stability of petroleum supplies are being considered.

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Nha Be petroleum depot in Ho Chi Minh City.

The Department of Energy – Oil and Gas has submitted a proposal to the Ministry of Industry and Trade to add fuel depots and transfer stations in Nghe An Province to supply petroleum products to Laos, with a proposed total capacity of 110,000-160,000 cubic meters, along with an 80-100 km fuel pipeline connecting Vietnam and Laos.

According to the proposal, the addition of these facilities is aimed at strengthening infrastructure connectivity and energy cooperation between Vietnam and Laos.

Nghe An has favorable conditions for developing a hub for receiving, storing, transferring, and supplying petroleum products to the North Central region and the Lao market.

The Department of Energy – Oil and Gas said that fuel supplies from Vietnam to Laos are currently transported mainly by road, making them dependent on transport capacity, road conditions, and conditions at border gates.

Research into a system of storage depots, transfer stations, and pipelines could establish a stable means of receiving, storing, transferring, and transporting large volumes of petroleum products. This would help ease pressure on road transportation and enhance the ability to ensure supplies for the Lao market.

The proposal identifies the Cua Lo area of Nghe An as advantageous due to its seaport, transport connections, and potential to link with the petroleum distribution network in the North Central region.

Under the development plan for Nghe An's seaport system, the Bac Cua Lo wharf area is designated to handle petroleum products, creating conditions for the development of an infrastructure chain comprising receiving ports, storage facilities, transportation systems, and distribution networks.

However, the Ministry of Industry and Trade said the selection of locations, capacity, and technology for fuel storage facilities must take into account safety distances from residential areas, urban areas, and tourist sites, while also meeting requirements concerning national defense and security, fire prevention and firefighting, and environmental protection.

The Ministry of Industry and Trade is currently seeking comments from relevant ministries and agencies before finalizing the proposal and proceeding with the next steps.

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