Vientiane (VNA) – The Lao Governmentis planning to produce biofuel in an effort to reduce reliance on importedfuels.
Recently, the Lao State Fuel Company signed an agreement with GAIA PetroCo., Ltd. of the Republic of Korea to launch a biofuel production project worth 20million USD in Laos.
The project will be located in Dongphosy village in Hadxayfong district of Vientiane capital.
The GAIAPetro Co., Ltd. holds a 55% of shares of the project, 22.5% is owned by the LaoState Fuel Company, and 22.5% by local investors.
Thejoint-venture aims to produce 500,000 litres of biogasoline a day.
Itis expected that the first year will be able to supply about 10 million litres permonth. The volume of biofuel will increase by 20% per year from the secondyear./.