(KPL) The Lao State Fuel Company signed an agreement here on 1 Nov, with GAIA Petro Co., Ltd of the Republic of Korea to launch a biofuel production project in Laos worth US$20 million.

The biofuel production project aims to produce 500,000 litres of biogasoline daily.

It is expected that the first year will be able to supply about 10 million liters of oil per month. The volume of biofuel will increase by 20% per year from the second year.

Signatories to the contract were the General Managing Director of the Lao State Fuel Company, Mr Sysangkhom Khotnhotha, who is also Asean Council on Petroleum, and the CEO of GAIA Petro Co., Ltd., Mr Kikung Jung.

The agreement was also signed by the Director of the Department of State-Owned Enterprises Reform and Insurance, Ministry of Finance, Dr Sonephet Inthavong.

The project would be located in Dongphosy village, Hadxayfong district, Vientiane.

GAIA Petro Co., Ltd. holds a 55 percent of share, 22.5 percent is owned by the Lao State Fuel Company, and 22.5 percent by local investors.

The international oil prices have constantly risen.

GAIA Petro Co., Ltd want to collaborate with those countries to become an energy independent country and to contribute to the country’s national economy and join forces with its people and welfare.

Source:
courtesy of KPL NEWS AGENCY

by KPL NEWS AGENCY

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