May 06, 2020 / 11:01

SCG adds US$1.4 billion to Vietnam petrochemical project

The Hanoitimes - This will be Vietnam's first integrated petrochemical complex once it is commissioned in 2023.

Thai conglomerage SCG Group has approved a plan to inject an additional US$1.386 billion into its Long Son Petrochemical Complex project, increasing the total investment to US$5.1 billion, according to Vietnam’s Ministry of Planning and Investment.

 Long Son petrochemical complex is scheduled for commercial operation by 2023. Photo: Long Son

The capital hike is aimed to improve the competitiveness and economic results by adjusting technical specifications and efficiency.

The project, which was previously known as Southern Petrochemical Complex, has seen changes to investors several times, from PetroVietnam to Vinachem, Vina SCG Chemicals Co., Ltd., and then Thai Plastic and Chemicals Pcl.

In June 2018, the complex became wholly owned by SCG Group after the company completed the purchase of a 29% stake from PetroVietnam.

Kicked off in early 2018, the petrochemical complex is designed to produce various petrochemical products, including essential plastic materials such as polyethylene, polypropylene, and other products in excess of two million tons per year, enabling it to substitute imported polyolefin products. Non-petrochemical supporting infrastructure, such as a deep sea port and other facilities, are also included, according to Vietnam Investment Review.

Located in Long Son commune in the southern province of Ba Ria-Vung Tau, 100 kilometers from Ho Chi Minh City, this integrated petrochemical complex will be the first of its kind in Vietnam once it is commissioned in 2023.

This integrated petrochemical complex will have a total olefin production capacity of 1.6 million tons per year.

SCG signed loan agreements worth more than US$3.2billion with six leading financial institutions namely Sumitomo Mitsui Banking Corporation, Mizuho Bank, Bangkok Bank, Krungthai Bank, Siam Commercial Bank, and Export-Import Bank of Thailand, according to Hydrocarbons Technology.