The Hanoitimes - Thailand`s Siam Cement Group (SCG) has signed an agreement to acquire the 29% stake in Vietnam`s Long Son Petrochemicals (LSP) from PetroVietnam for over VND2.05 trillion (US$90.2 million), according to a stock exchange filing by the Thai firm.
Vina SCG Chemicals, a wholly owned subsidiary of SCG, has signed an agreement with PetroVietnam to acquire the latter's 29% stake in LSP. The transaction is expected to be completed by the end of June 2018.
With this, SCG now fully owns the US$5.4-billion LSP complex from the previous 71% shareholdings. The project is expected to be commissioned in 2023.
The complex was licensed in 2008 at an initial investment capital of US$3.7 billion with participation from PetroVietnam, Vietnam Chemical Group (Vinachem) and SCG. VinaChem, however, withdrew its capital and was replaced by Qatar Petroleum International (QPI) in 2012.
In April 2017, QPI also decided to withdraw from LSP. At the time, through its wholly-owned subsidiary Vina SCG Chemicals (VSCG), SCG acquired a 25% stake from QPI in LSP Limited, the investor of the LSP complex, according to a statement published on SCG's website.
Located in southern Ba Ria-Vung Tau province in Vietnam, LSP targets to develop a 1-million-ton ethylene cracker with a flexible gas and naphtha feed, creating an olefin capacity of 1.6 million tons per year. As per SCG's plan, the complex is scheduled to start commercial operations in the first half of 2022.
Located in southern Ba Ria-Vung Tau province in Vietnam and being the first of its kind in Vietnam, the complex targets to develop a 1-million-ton ethylene cracker with a flexible gas and naphtha feed, creating an olefin capacity of 1.6 million tons per year.
At present, Dung Quat Refinery, the first-ever oil refinery in Vietnam, processes about 6.5 million tons of crude oil per year, meeting only 30% of the domestic demand for petroleum products, according to the Ministry of Industry and Trade.
Last February, SCG and the Vietnamese government held a ground-breaking ceremony for the plant. However, according to Roongrote Rangsiyopash, President and CEO of SCG in an interview to Nikkei Asian Review in March, that did not signal the start of construction but "was a symbol to affirm commitments by the Vietnamese government, the local government and by ourselves."