Italian group appointed technical design consultant for northern Vietnam petrochemical complex

Maire Group of Italy has been employed as a technical design consultant for a $1.5 billion petrochemical facility developed by Vietnam's Stavian Quang Yen Petrochemical JSC in the northern province of Quang Ninh.

The front end engineering design (FEED) contract for the project will be conducted within 10 months by Tecnimont S.p.A, an Integrated E&C Solutions company under Maire Group, according to a contract signed last week.

According to Dinh Duc Thang, chairman and CEO of Stavian Quang Yen Petrochemical JSC, the global demand for petrochemical products is expected to continue rising amid strong growth of the downstream processing-manufacturing industry, especially in the Asia-Pacific region.

In 2022, the demand for plastic materials in the Vietnamese market was about 8 million tons, mostly Polypropylen (PP) and Polyetylen (PE), while the domestic market's raw material supply remained limited.

“Therefore, the cooperation with Tecnimont will contribute to ensuring the autonomy of input materials for the processing-manufacturing industry, which is the focus of the circular and sustainable economy development in Vietnam,” he said.

In Vietnam, Tecnimont successfully implemented a FEED contract for the Phu My polypropylene plant project in 2021.

Emanuele Pozzati, sales chemical & petrochemical vice president of Tecnimont, said that FEED is a very important part of project implementation. The selection of Tecnimont as a FEED consultant for the project shows the very serious and professional investment Stavian Quang Yen Petrochemical is making.

The Stavian Quang Yen Petrochemical Plant is expected to contribute to replacing and gradually reducing imports of petrochemical products and input materials for domestic manufacturing industries, creating an important foundation for future investment projects on downstream industry and related industries in the locality.

It will also contribute trillions of Vietnamese dong (VND1 trillion = $42.6 million) each year to the state budget as well as create direct and indirect jobs for thousands of highly qualified technical workers.

Stavian Quang Yen Petrochemical is committed to minimizing its impact on the environment and accompanying the Vietnamese government in its effort towards zero net emissions by 2050.

The Stavian Quang Yen Petrochemical project, a partnership between Hanoi-headquartered Stavian and Quang Ninh-based Yen Hung Liquid Port JSC (YHLP), will be built over 30 hectares at the Bac Tien Phong Industrial Park, Quang Yen town. YHLP will supply the facility with materials and other input materials.

The project is expected to supply 600,000 tons of PP, a type of polymer, every year. It is slated to start operations by the fourth quarter of 2026.

The investor said they had selected the most advanced technologies for PP production to date, including PDH technology from American company Honeywell UOP, and PP technology from Italy-based LyondellBasell, one of the largest plastics, chemicals, and refining companies in the world.

The petrochemical facility will also use high-quality equipment from Europe and the G7 countries to ensure environmentally friendly production and minimize greenhouse gas emissions.