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Vietnam petrochemicals complex signs loan agreements worth US$3.2 billion

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Hydrocarbon Engineering,

SCG has taken a step closer to beginning construction on Vietnam’s first fully integrated Petrochemical Complex project, Long Son Petrochemicals Co. Ltd (LSP) by recently signing loan agreements worth over US$3.2 billion with six leading financial institutions.

The project will begin construction in 3Q18 and is expected to start commercial operations in the first half of 2023 to meet Vietnam’s soaring demand which is as high as 2.3 million tpy; demand is projected to grow in light of the country’s strong economic growth.

Roongrote Rangsiyopash, President and CEO of SCG, disclosed: “Long Son Petrochemicals project or LSP is a world-scale petrochemical complex with the investment of approximately US$5.4 billion or 180 000 MB. It is currently SCG’s flagship investment. This venture will increase competitive advantages of SCG’s chemicals business in Southeast Asia. Furthermore, the project is equipped with world-class advanced technologies which allow for high flexibility to utilise raw materials resulting in increased competitive advantage. The project also leverages digital technologies to create innovations for better products, services, and solutions for customers.”

The loan agreements are made in US Dollars and are signed with the following financial institutions: Sumitomo Mitsui Banking Corp., Mizuho Bank, Bangkok Bank, Krungthai Bank, Siam Commercial Bank, and Export-Import Bank of Thailand. The total credit facilities are worth over US$3.2 billion with a tenor of approximately 14 years. Sumitomo Mitsui Banking Corp. is the project's financial advisor.

LSP is located in Ba Ria – Vung Tau province, 100 km from Ho Chi Minh City. Its olefins production capacity is 1.6 million tpy for manufacturing high-density polyethylene, linear low-density polyethylene, and polypropylene.

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