17 Dec, 2025

Laos Rejects Claims of Oil Re-exports to Cambodia, Assures Compliance with Law

Lao Minister of Industry and Commerce Malaithong Kommasith has confirmed that all oil imported from Thailand is strictly reserved for domestic use within Laos, dismissing concerns that fuel supplies are being re-exported to Cambodia.Speaking on 16 December during a meeting with Thai Minister of Energy Prasert Sinsukprasert, Malaithong said any such re-export would be illegal under Lao regulations governing cross-border trade and goods transit. He stressed that the Lao government does not permit oil imported from Thailand to pass through the country for onward shipment to third countries.According to the Lao side, the volume of oil imported from Thailand has remained stable and has not increased significantly. This assessment was confirmed by oil traders as well as the Lao Customs Department. Officials explained that daily truck movements at the Chong Mek border can fluctuate, averaging around 20 fuel trucks per day. On some days, crossings may drop to as few as five trucks, while on busier days the number can rise to about 50.Seasonal demand also plays a key role in Laos’ oil consumption patterns. Between November and April, after the end of the rainy season, oil consumption in Laos typically increases, particularly in southern provinces where mining activities expand during the dry months.Thai Energy Minister Prasert welcomed the assurances and reiterated Thailand’s position that fuel imported into Laos must remain for domestic use only. He said Thai authorities, together with Lao agencies, are closely monitoring oil movements to prevent any violations.Temporary Fuel Suspension at Chong Mek BorderThe statements come amid heightened scrutiny at the Chong Mek permanent border crossing in Sirindhorn district, Ubon Ratchathani. On 15 December, Thai authorities temporarily suspended fuel exports, along with military equipment and related items, after detecting unusually high volumes of fuel shipments passing through the checkpoint.Thailand’s Second Army Area Operations Center reported that inspections found export levels that appeared abnormal compared with previous periods, with some shipments suspected of being routed through Laos before reaching Cambodia. The suspension took effect at midnight on the same day and remains in place until further notice, although other cross-border activities continue under existing regulations.In response to the disruption, Thailand’s Defence Ministry later apologized to Laos for the impact of the temporary measures, emphasizing that the restrictions were driven by security concerns linked to tensions along the Thai-Cambodian border.Defence Ministry spokesperson Surasant Kongsiri said at a Joint Press Center briefing that the controls were not aimed at Laos or Lao trade. He stressed that Thailand respects Laos’ sovereignty and the countries’ bilateral relations, describing the suspension as a precautionary step to prevent the misuse of sensitive goods during a period of heightened regional security concerns.

13 Dec, 2025

Oudomxay Province Inaugurates Laos’ Largest Solar Power Project

Oudomxay Province on 13 December officially inaugurated a 1,000-megawatt solar power project, marking one of Laos’ largest renewable energy developments to date. The facility was developed by CGN Energy Technology (Laos) Co., Ltd. in partnership with the Lao government.The project was launched under a concession agreement signed in September 2024, with construction beginning the same month. Approximately 800 technical specialists and laborers worked across 2,090 hectares covering seven villages in Xay and Namor districts. Before commissioning, the project completed full land clearing and landmine removal, while making significant progress on internal roads and electrical infrastructure.During a site inspection on 29 May, Oudomxay Governor Bounkhong Lachiemphon reviewed ongoing construction, confirming that clearing was fully completed, landmine clearance had reached 95.74 percent, internal roads were more than 81 percent finished, and electrical pole installation was nearing 60 percent. Solar panel deployment had begun, with mounting structures at 3.56 percent and panel installation at 1.89 percent. Transmission infrastructure preparations, including surveys and site confirmation for 43 pole bases, were also underway.Once fully operational, Phase I of the project is expected to generate approximately 1.7 billion kilowatt-hours of electricity annually, enough to supply power to roughly 10 million households. The electricity will be transmitted to China’s Yunnan Province via the China–Laos 500-kilovolt power grid interconnection, supporting regional energy transition efforts and enhancing cross-border power supply stability.The solar farm is also expected to deliver socio-economic benefits to local communities, including job creation, vocational training, and improved infrastructure for surrounding villages.The project forms a central part of the Northern Laos Interconnected Clean Energy Base, which integrates solar, wind, and biomass power projects across Oudomxay, Luang Namtha, and Phongsaly provinces. The initiative aims to establish northern Laos as a regional clean energy hub.Solar Power Growth Surges in LaosIn a broader effort to national development, Laos is accelerating its renewable energy expansion with several new solar power projects across the country, involving partnerships with South Korean and U.S. companies.On 10 November, the state-run utility Electricité du Laos (EDL) signed an agreement with South Korean firm CS Tech Co., Ltd. to develop floating solar installations on its hydropower reservoirs. The partnership will also explore carbon credit initiatives to support Laos’ climate goals.Earlier in August, EDL reached agreements with another South Korean company, ASFC Co., Ltd., to build a 15-megawatt solar project near several of its hydropower plants, including Xeset 1-3, Xelabam, and Nam Mang 3.In southern Laos, the provincial government of Attapeu approved a 5-megawatt solar power project on 28 October, to be developed by South Korean firm SBIN Corporation. The project will cover 10 hectares in Sanongmai-Piandong village, Sanamxay district.Meanwhile, U.S.-based Convalt Energy is developing a large-scale 1,200-megawatt solar farm in Attapeu, representing an investment of USD 1.3 billion. The facility will span approximately 1,800 hectares, making it one of the largest solar projects in the country.These initiatives, alongside ongoing developments in northern provinces aim to diversify the nation’s energy mix, reduce reliance on fossil fuels, and strengthen cross-border energy cooperation in the region.