Econ
Vietnam asks Thai SCG to speed up US$5 billion petrochemical project
Long Son Petrochemical Complex plays a significant role in supporting other sectors.
Vietnam’s Deputy Prime Minister Trinh Dinh Dung last week asked Thailand’s SCG Group to accelerate the construction of a petrochemical complex project which cost an investment of US$5.2 billion.
Long Son Petrochemical Complex (LSP) is expected to serve the operations of many sectors, so the early completion and operation will make a great contribution to the development of relevant industries in Vietnam, Dung told Roongrote Rangsiyopash, Chairman and CEO of SCG Group – the investor of the project.
Roongrote Rangsiyopash said the investor has fulfiled 24% of the construction progress, 2% later than the given plan.
Initial investment for this project is about US$3.7 billion and SCG is finalizing procedures to raise the investment to US$5.2 billion soon, the CEO said.
LSP is scheduled to be put into operation by the end of 2022.
Located in the southern province of Ba Ria-Vung Tau, the complex is positioned as Vietnam’s first integrated petrochemical complex to produce a total annual capacity of 2 million tons of olefins (high-density synthetic fibers), polyetylen, and ploypropylen.
Kicked off in 2008 by a joint venture between SCG, Vietnam National Oil and Gas Group (PetroVietnam), and Qatar Petroleum, the project came into a stall due to global recession. In 2015, the Qatari partner withdrew and SCG bought its stake in 2017.
In 2018, SCG also bought PetroVietnam’s 29% stake to become the sole owner. The project was resumed in February 2018.
The complex is designed to produce various petrochemical products, including essential plastic materials such as polyethylene, polypropylene, and other products in excess of 2 million tons per year, enabling it to substitute the import of polyolefin products, according to the Vietnam Investment Review.
Vietnam's Deputy Prime Minister Trinh Dinh Dung and Roongrote Rangsiyopash, Chairman and CEO of SCG Group. Photo: VGP
|
Long Son Petrochemical Complex (LSP) is expected to serve the operations of many sectors, so the early completion and operation will make a great contribution to the development of relevant industries in Vietnam, Dung told Roongrote Rangsiyopash, Chairman and CEO of SCG Group – the investor of the project.
Roongrote Rangsiyopash said the investor has fulfiled 24% of the construction progress, 2% later than the given plan.
Initial investment for this project is about US$3.7 billion and SCG is finalizing procedures to raise the investment to US$5.2 billion soon, the CEO said.
LSP is scheduled to be put into operation by the end of 2022.
Located in the southern province of Ba Ria-Vung Tau, the complex is positioned as Vietnam’s first integrated petrochemical complex to produce a total annual capacity of 2 million tons of olefins (high-density synthetic fibers), polyetylen, and ploypropylen.
Kicked off in 2008 by a joint venture between SCG, Vietnam National Oil and Gas Group (PetroVietnam), and Qatar Petroleum, the project came into a stall due to global recession. In 2015, the Qatari partner withdrew and SCG bought its stake in 2017.
In 2018, SCG also bought PetroVietnam’s 29% stake to become the sole owner. The project was resumed in February 2018.
The complex is designed to produce various petrochemical products, including essential plastic materials such as polyethylene, polypropylene, and other products in excess of 2 million tons per year, enabling it to substitute the import of polyolefin products, according to the Vietnam Investment Review.
