Thai group’s $5.4 bln Vietnam petrochemical complex 96% complete

The Siam Cement Group’s (SCG) Long Son Petrochemicals Complex in southern Vietnam was 96.2% complete as of July, according to a source with knowledge of the matter.

The Thai conglomerate started construction of the $5.4 billion complex in Ba Ria-Vung Tau province in the fourth quarter of 2018. It expects a partial start to operations this year and a complete start in the first half of 2023.

As of July, the complex’s olefins factory was 92.9% complete; tanks, 99.5%; high-density polyethylene (HDPE) plant (98.3%); polypropylene (PP) factory (98.2%); linear low-density polyethylene (LLDPE) factory (94.9%); main support factory (99.9%); and buildings and internal roads (99.7%).

Work on terminals in the complex is complete, the source said, asking not to be named.

In August 2018, SCG signed loan agreements worth more than $3.2 billion with six leading financial institutions to implement the project. The lenders were Sumitomo Mitsui Banking Corporation, Mizuho Bank, Bangkok Bank, Krungthai Bank, Siam Commercial Bank and Export-Import Bank of Thailand.

SCG’s Long Son Petrochemicals Complex is a key development in Vietnam’s oil and chemicals sectors. Therefore, in 2019, the project was placed on the list of projects supervised by the Vietnamese government’s Council for State Inspection of Construction Works.

According to the Ministry of Industry and Trade, periodical examinations have shown that the quality of the works at Long Son has basically met requirements. SCG has reviewed, checked and reported to the council the results of implementing its instructions.

In a meeting with Vietnamese Prime Minister Pham Minh Chinh this February, SCG president and CEO Roongrote Rangsiyopash had said the group was eyeing two projects - upgrading production capacities in the complex and developing the second phase.

He said phase two would employ environment-friendly, advanced technology, and concentrate on the production of high-value added products such as SCG green polymer, an innovative eco-friendly polymer, to promote sustainable development.

The second phase will be developed in the same area, benefiting from the availability of infrastructure to expand the plants, he said, adding: “Official application submissions will be made on a suitable upcoming occasion.”

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.