The $5.4 billion Long Son Petrochemicals Complex (LSP) in Vietnam’s southern province of Ba Ria-Vung Tau has experienced an unexpected technical setback during a test run of the whole complex.
Thailand’s The Siam Cement Group (SCG), the parent company of the project investor SCG Chemicals Public Company Limited (SCGC), revealed the information in a recent statement sent to the Stock Exchange of Thailand.
SCG clarified that LSP’s downstream plants for high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), polypropylene (PP) and utilities had already passed its test run inspection in December 2023.
A test run for the whole facility, which includes the olefins downstream and upstream plants, uncovered "an expected technical difficulty which is currently under investigation," SCG added.
LSP will resume the test run in June 2024, the company stated.
SCG began construction of the complex in the fourth quarter of 2018. In November 2022, the project began partial operations. At full capacity, its annual output will include 1.4 million tons of PE and PP.
The $5.4 billion LSP is among the biggest Thai investments in Vietnam, accounting for more than one-third of the kingdom’s total foreign direct investment in the country, which stands at over $14 billion.
Siam Cement Group (SCG) earned revenues of THB121.85 billion ($3.45 billion) from its overseas business in 2023, down 23% year-on-year, including THB44.55 billion ($1.26 billion) from Vietnam, down 25%.
According to its latest financial report, Thailand remained SCG’s biggest source of revenue, accounting for 57% of the total. Among overseas markets, Vietnam was the largest, followed by Indonesia with THB36.96 billion ($1.05 billion), and Cambodia with THB11.07 billion ($313.3 million).
Vietnam has two operational oil refining and petrochemical complexes, namely the Dung Quat oil refinery in Quang Ngai province and the Nghi Son refinery and petrochemical complex in Thanh Hoa provinve, both in central Vietnam.