SCC subsidiary - Vina SCG Chemicals to invest in Long Son Petrochemicals

24-Jul-17

The Siam Cement Public Co. Ltd (SCC) has announced that its wholly-owned subsidiary, Vina SCG Chemicals Co. Ltd (VSCG), will proceed with the investment in Long Son Petrochemicals Co. Ltd (LSP). The final contract signing is expected to be in H2-17, with commercial operation expected to commence in H1-22. The total project cost is estimated at US$5.4 bln and financing will be with a combination of foreign denominated debt and equity at 60:40.

LSP is positioned as Vietnam’s first petrochemicals complex. The project possesses competitive aspects ranging from integration, economies of scale, and flexible feedstock. 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 1 million ton ethylene cracker with flexible gas and naphtha feed to yield in total olefins capacity of up to 1.6 million tpy depending on the feedstock mix. LSP’s technology will be comprised of proven processes from leading world class licensors. The feedstock will consist of locally sourced ethane, and imported propane and naphtha, on secured contracts and at competitive market prices. This will facilitate the highly flexible cracker that is able to utilise gas up to 80% for cost optimisation. Furthermore, the downstream polyolefins operations will be of similar scale to the cracker, consisting of high density polyethylene (HDPE), linear low density polyethylene (LLDPE) and polypropylene (PP) plants.