Govt to fast-track Laos-Vietnam oil pipeline study, construction could take 2–3 years: PM

The Lao government plans to accelerate a feasibility study for a proposed oil pipeline linking Laos and Vietnam, with construction expected to take at least two to three years, as part of efforts to strengthen national fuel security and reduce dependence on road transport.
Prime Minister Saleumxay Kommasith outlined the plan earlier this month at the National Assembly’s Second Ordinary Session, which concluded on October 21.
He said the pipeline will help reduce fuel transportation costs and ensure larger and more consistent supplies to Laos.
The proposed project involves building an oil pipeline from a Vietnamese port to the Laos-Vietnam border, and fuel storage depots near the border to support the supply of petroleum products to Laos.
The Prime Minister indicated that construction, once commenced, will take at least two to three years to complete. A precise date for beginning construction has not yet been announced.
Speaking to lawmakers a day before the official visit to Laos by Vietnamese Prime Minister Le Minh Hung, Mr Saleumxay announced that the two governments would sign a memorandum of understanding (MoU) on the project during the visit.
The announcement was followed by the signing of an MoU on Laos-Vietnam oil supply infrastructure on October 8, when the two prime ministers held bilateral talks in Vientiane.
The agreement was among 11 cooperation documents signed during the Vietnamese leader’s two-day official visit, covering infrastructure, investment, finance, education, digital systems and other areas.
During their talks, the two leaders agreed to accelerate major connectivity projects, including the Hanoi-Vientiane Expressway, the Vung Ang seaport, a railway line linking the seaport to Vientiane and the proposed oil pipeline.
The pipeline project forms part of the Lao government’s broader strategy to improve energy security amid uncertainty in global oil markets and the risk of international supply disruptions.
Addressing the National Assembly, Mr Saleumxay outlined several measures aimed at maintaining adequate fuel supplies and protecting the country against shortages and sharp price fluctuations.
The government plans to maintain fuel reserves of about 60 million litres or more and encourage importers to diversify their sources of supply, including Vietnam, China and Singapore, rather than relying on a single country.
It plans to develop additional fuel storage facilities in northern, central and southern Laos to improve distribution, and to strengthen the country’s capacity to respond to possible supply disruptions.
Other measures include tighter inspections of fuel importers and distributors to prevent hoarding and price gouging, and requiring companies to maintain adequate reserves and regularly report their fuel stocks.
The government will explore cooperation with ASEAN countries on emergency fuel stockpiling to strengthen preparedness for regional and international supply disruptions.
The proposed pipeline is intended to complement these measures by reducing reliance on fuel transportation by road and providing a more efficient means of securing larger and more consistent fuel supplies.
Although the Lao and Vietnamese governments have signed an MoU on oil supply infrastructure, the pipeline remains at the planning and feasibility study stage, with further technical assessments and investment arrangements needed before construction can begin.

By Souksakhone Vaenkeo
 (Latest Update October 22, 2026)