Vina SCG Chemicals, wholly-owned subsidiary by SCG, announced that it will proceed with the investment in the Long Son Petrochemicals Company (LSP). LSP issued the Letter of Award to key contractors on July 14, 2017 and the final contract signing is expected to be in the second half of 2017.
Bangkok/Thailand — The estimated four and a half year construction of the complex is managed under the consolidated turnkey lump sum project format, with commercial operation expected by the first half of 2022. In the Lett of Award, the company stated that it "is planning to select suitable supplier(s) for the Contract for provision of Ziegler Natta Catalyst (4th generation) or higher for Polypropylene production".
The total project cost of LSP is approximately $ 5.4 billion. SCG’s indirect stake in LSP is 71 % (via Vina SCG Chemicals Co., Ltd. 53 % and Thai Plastic and Chemicals Public Company Limited 18 %), while Vietnam Oil and Gas Group (PetroVietnam) holds 29 %.
The plant will be Vietnam’s first petrochemicals complex. Non-petrochemical supporting infrastructure such as a deep sea port and other facilities are also included at approximately 30 % of the total investment cost.
At the heart of the project is a one million ton ethylene cracker with flexible gas and naphtha feed to yield in total olefins capacity of up to 1.6 million tons per year depending on the feedstock mix. According to the company, the feedstock will consist of locally sourced ethane, and imported propane and naphtha adding that this would facilitate the flexible cracker. Furthermore, the downstream polyolefins operations will be consisting of High Density Polyethylene (HDPE), Linear Low Density Polyethylene (LLDPE) and Polypropylene (PP) plants.
LSP is located 100 km from Ho Chi Minh City, the main market and economic heartland of Vietnam. In 2016, Vietnam imported approximately 2.3 million tons of polyolefins products, SCG claims.