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Investment proceeding in Long Son Petrochemicals project

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Hydrocarbon Engineering,

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 2H17. 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 1H22.

The total project cost of LSP is approximately US$5.4 billion 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 t 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.

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