VIENTIANE, June 30 (Xinhua) -- Lao government has signed an agreement with Petro Lao Company Limited to procure fuel for the purpose of national energy security, local daily KPL reported Thursday.
The agreement was signed by Deputy Finance Minister Thipphakone Chanthavongsa, and President of Petro Lao Somvang Vongvilay on Monday.
Neither side has yet revealed how much fuel will be procured under the agreement designed to ensure that there is a reserve fuel in times of emergency, especially when either disaster preventive efforts need to be made or response and rehabilitation measures are undertaken. Setting aside a reserve will also be done to stabilize market demand for fuel as well as to provide for national defense and public security related purposes.
The national oil stockpiling plan is also designed to ensure national economic and political stability and create favourable condition for the implementation of the national socio-economic development plan of the government, said the report.
Lao government aims to have stockpiled petroleum products including 60 million liters of gasoline and diesel as part of the National Oil Stockpile plan by 2020, equivalent to 16 days supply.
For the commercial stockpile, all companies are obliged to have sufficient oil in their storage to be able to supply their customers for at least 15 days.
The storage facilities comprise above ground tanks located in northern, central and south provinces of Laos.
This oil stockpile is being administered under the national stockpiling policy and using the national budget, with the Ministry of Finance as the agency responsible for the stockpiling. The national oil stockpile is classified as a government industry, with the storage facilities owned and run by a special private company while the government owns the oil and pays usage fees.
