VIETNAM: SCG and PetroVietnam plan to proceed with Long Son petrochemical complex
Siam Cement Group (SCG) and PetroVietnam have signed an agreement to accelerate the progress of the Long Son petrochemical project in Vung Tau province, Vietnam, reported the Vietnam News Agency.
The USD 5.4 billion complex will include a 1 million t/y ethylene cracker with flexible gas and naphtha feed, which will have the capacity to produce up to 1.6 million t/y of olefins, depending on the feedstock mix. It also includes the downstream production of 2.7 million t/y of polyethylene and polypropylene. Start-up is expected in 2021.
The partners agreed to implement the engineering, procurement and construction contract in the fourth quarter of 2017, and agreed to each contribute capital to the project.
Earlier this year, SCG, through its wholly-owned Vina SCG Chemicals Co. subsidiary, entered into an agreement with QPI Vietnam (QPIV), a subsidiary of Qatar Petroleum, to acquire QPIV's 25 % stake in Long Son Petrochemicals Co. (LSP). The transaction, valued at USD 36.1 million, will increase SCG's direct and indirect stake in LSP to 71 % from 46 %. PetroVietnam holds the remaining 29 % interest.
Source: Weekly “PetroChemical News”, Durham, NC, USA; 28 Aug 2017
(Syed Rashid Ali, Karachi, Pakistan)