PV Gas to supply Thai group’s $5.4 bln Vietnam petrochemical complex

Leading Vietnamese gas supplier PV Gas will jointly supply materials for the $5.4 billion Long Son Petrochemicals Complex, invested by Thailand's The Siam Cement Group (SCG) in the southern province of Ba Ria-Vung Tau.

PV Gas, listed on the Ho Chi Minh Stock Exchange (HoSE) as GAS, will supply ethane, propane, and condensate/naphtha to the complex, PV Gas reported from a meeting last Friday between the two sides.

The complex is set to enter commercial operation next month, with an annual demand of 1.6 million tons of gas materials.

PV Gas is seeking approval from provincial authorities for a project to extract ethane from natural gas for the complex.

Both sides also discussed propane and condensate consumption for the complex sourced from domestic supplies and PV Gas imports.

Pham Van Phong, CEO of PV Gas, emphasized the firm, with its resourceful capabilities, can ensure stable, quality and competitive supplies for its partners.

PV Gas has targeted a revenue of VND76.44 trillion ($3.25 billion), profit after tax of VND6.54 trillion ($278.4 million), and state budget contribution of VND3.91 trillion ($166.47 million) in 2023.

GAS shares reached VND94,000 ($4) per unit at the HoSE's close on Monday.

The Siam Cement Group (SCG) started construction of the $5.4 billion Long Son Petrochemicals Complex in Ba Ria-Vung Tau in the fourth quarter of 2018.

Thailand’s SCG posted a revenue of 59.06 billion bhat ($1.72 billion) from its Vietnam operations last year, up 21% year-on-year, according to the group’s financial statement.

Accounting for 10.37% of SCG’s total revenue last year at 569.61 billion bhat ($16.54 billion), Vietnam was the second-biggest source of revenue for SCG, only after its home country with 311.73 billion bhat ($9.05 billion).

Vietnam now has two operational oil refineries - Nghi Son Refinery and Petrochemical complex in Thanh Hoa province, and the Binh Son Refining and Petrochemical in Quang Ngai province, both in the central region.

Nghi Son is a $9 billion refinery co-owned by state-run Petrovietnam, Kuwait Petroleum Europe B.V. (KPE), and Japan’s Mitsui Chemical and Idemitsu Kosan Co.

The other complex, better known as Dung Quat Refinery, is a Petrovietnam subsidiary and has received more than $3 billion in investments.