SCG+partners go ahead with $4.5bn complex

 The joint venture agreement was signed on Thursday in Bangkok by SCG, QPI, PetroVietnam (PVN) and Vinachem. In Thai baht, the project is worth about Bt140 billion.

“The project will be Vietnam’s first integrated petrochemicals complex, serving as the spring board for import substitute and value added conversion industries for the country, and a vehicles to capture the ASEAN growth for Vietnam,” said Kan Trakulhoon, president and CEO of SCG.
As part of this signing ceremony, Qatar International Petroleum Marketing Comp. Ltd (TASWEEQ), the exclusive marketer of Regulated Products from Qatar, signed a long term feedstock agreement to supply the cracker with propane and naphtha, while PV GAS, a subsidiary of PetroVietnam, signed a Memorandum of Understanding to supply ethane.
SCG holds 28 per cent in the project, while its subsidiary Thai Plastic and Chemicals (TPC) holds another 18 per cent. The remaining are significant strategic partners comprising of QPI Vietnam (subsidiary of Qatar Petroleum International), Petro Vietnam and Vinachem. Following the signing of this joint venture agreement, and finalisation of the financing agreements, the commercial operation is expected in the next 4 years.
The complex’s capacity will consist of a 1.4 million tonnes of olefins from a flexible cracker utilising  feedstock as ethane, propane and naphtha, with supporting infrastructure, such as storage facilities, port, jetty, power plant and other utilities.  Furthermore, the cracker will be fully integrated with a wide range of downstream products, including polyethylene (PE), polypropylene (PP) and vinyl chloride monomer (VCM).  The majority of these products will be consumed domestically, supporting a total Vietnamese population of approximately 90 million.
 “The petrochemicals complex will utilize state-of-the-art technology with health, safety and environment benchmarks of international standards. Its products will be able to serve growing demand in both Vietnam and ASEAN,” added Kan.
 Located on Long Son Island,  province of Ba Ria-Vung Tau in southern Vietnam, and adjacent to Vietnam’s future refinery for operational synergy, approximately 100 km southeast of Ho Chi Minh City, the petrochemical complex will be in proximity of southern Vietnamese market. The complex has an excellent synergy with a wide array of Vietnamese industries such as consumer goods packaging, PVC pipe and profiles, electrical appliances, auto industry, etc, all of which will help contribute to the growth of the Vietnamese economy.