Vietnam, China firms to build facilities for Long Son Petrochemicals' $500 mln expansion

China Tianchen Engineering Corporation (TCC) and Petrovietnam Technical Service Corporation (PTSC) will jointly build facilities for a $500 million expansion of the Long Son Petrochemicals (LSP) complex, invested by Thailand’s Siam Cement Group (SCG).

In a Thursday statement, SCG said a consortium of TCC and PTSC have entered an engineering, procurement, and construction (EPC) contract to build two ethane storage tanks at Long Son Petrochemicals in Vietnam’s southern coastal province of Ba Ria-Vung Tau.

These cryogenic ethane storage tanks are designed full containment (outer concrete wall and roof, inner special grade metal) with capacity of approximately 55,000 tons per tank and require a temperature as low as negative 90 degree Celsius. The construction is expected to be completed by the end of 2027.

SCG Chemicals (SCGC), under SCG, started land preparation for the $5.2 billion Long Son Petrochemicals complex in 2018, started up all utilities in 2022, and conducted a full complex test run in December 2023.

Long Son Petrochemicals began its commercial operation (COD) in September 2024, with an initial production output of 74,000 tons during the trial phase. At full capacity, the complex’s annual output will include 1.4 million tons of polyethylene and polypropylene.

In October 2024, SCG said it will invest an extra $700 million in Long Son Petrochemicals to diversify its production by utilizing ethane imported from the United States as raw material for the complex.

This development highlights SCG’s commitment to elevate Long Son Petrochemicals’ long-term competitiveness by lowering feedstock cost, improving feedstock flexibility, and lowering the complex's carbon emissions, SCG noted.