The LSP complex is invested by a joint venture between Thailand's Siam Cement Group (SCG) and PetroVietnam (PVN) with the total capital of US$5.4 billion on an area of 464 hectares.
Illustration photo.
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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.
The project's construction, therefore, is in line with the Politburo's development strategy of the Vietnamese petroleum sector by 2025, with vision to 2035, stressed Prime Minister Nguyen Xuan Phuc at the ground-breaking ceremony.
As such, the project will play an important role in facilitating the Vietnamese refinery and petrochemical industry, with a purpose to serve domestic demand and export alike, Phuc said.
The Prime Minister requested local authorities to supervise the investor's compliance with regulations on protecting the natural and social environments, maintaining locals' traditional culture, and restoring local natural forests to serve sustainable and long-term development.
The project is expected to create jobs for over 20,000 employees over the construction process, said the Chairman of Ba Ria-Vung Tau Provincial People's Committee, Nguyen Van Trinh, at the event.
Once operational, it is expected to create jobs for over 1,000 technical workers and contribute about US$60 million per year to the provincial and state budgets, Trinh informed.
SCG currently holds 71% of LSP's charter capital, while PVN owns the remaining 29%. Previously, SCG revealed its intention to fully acquire the LSP complex, according to a report released on January 19.
However, SCG's media representative in Vietnam has not verified the potential purchase of PVN's 29% to Hanoitimes.
The Long Son Petrochemicals complex was licensed in 2008 with an initial investment capital of $3.7 billion by three groups: PVN, 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 the LSP complex. 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.
