SCG expects work to start in 2015
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Sumitomo Mitsui appointed project's financial adviser
Siam Cement Group (SCG) expects to start construction of its petrochemical complex in Vietnam in 2015 and complete it in 2018, president and chief executive Kan Trakulhoon said yesterday.
Project development has shown progress, he said, adding that SCG had met with executives of Japanese banks, including Sumitomo Mitsui Banking Corp, Bank of Tokyo-Mitsubishi UFJ and the Japan Bank for International Cooperation, which have committed to providing financial support to the project.
The company has appointed Sumitomo Mitsui Banking Corp as financial adviser for the project.
The project will utilise technology that enables the cracker plant to use natural gas and naphtha alternately as raw material, which will enable the plant to reduce production costs accordingly, said Kan.
The project is now selecting companies to take charge of engineering procurement construction management, and SCG has invited companies to propose the price-bidding document.
The complete selection process is expected to take between nine and 12 months.
The SCG chief said that bargaining power in the machinery market at present belonged to the buyers. He therefore expects the total cost of the project to be lower than the previously estimated US$4.5 billion (Bt141.5 billion).
He is confident that SCG will be able to kick off project construction in 2015, and said completion would be achieved in 2018.
SCG last year entered a joint-venture agreement in the project with QPI Vietnam (a subsidiary of Qatar Petroleum International) and the Vietnam National Oil and Gas Group (PetroVietnam).
SCG will hold 46 per cent in the project, while PetroVietnam and the Qatari partner will own 29 per cent and 25 per cent, respectively, although the exact shareholding proportion will be reviewed later.
