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SCG signs MoU to proceed with Long Son Petrochemicals

Released at: 14:22, 18/08/2017

SCG signs MoU to proceed with Long Son Petrochemicals

Photo: SCG

Thai giant strikes joint venture with PetroVietnam.

by Hong Nhung

SCG announced on August 18 that the Long Son Petrochemicals (LSP) project will proceed under a joint venture between the Vietnam Oil and Gas Group (PetroVietnam) and SCG.

The two parties signed a memorandum of understanding (MoU) at Government House on August 17 to confirm their partnership investment in LSP. The signing ceremony was attended by Mr. Nguyen Vu Truong Son, President and CEO PetroVietnam, and Mr. Roongrote Rangsiyopash, President and CEO of SCG.

The ceremony was presided over by Prime Minister Nguyen Xuan Phuc and Thai Prime Minister General Prayut Chan-o-cha. There was also an MoU signed between SCG chemicals subsidiary and PetroVietnam’s subsidiaries on exploring new opportunities for potential collaboration in the petrochemical business in the future.

“It has been a great honor for SCG to be recognized as a good citizen in Vietnam for more than 20 years,” said Mr. Rangsiyopash. “Positioned as Vietnam’s first petrochemicals complex, LSP will be a key supplier for the manufacturing industry in support of Vietnam’s industrial and economic development. This will also be in line with the national development plan.”

LSP is located in southern Ba Ria Vung Tau province, just 100 km from Ho Chi Minh City, the main market and economic heartland of Vietnam. Total olefins capacity is up to 1.6 million tons per year. The highlight of the project is its technology, which comprises proven processes from leading world-class licensors.

SCG last month announced that the construction of the LSP complex is scheduled to take four and half years, with commercial operations to begin in the first half of 2022.

The total cost is approximately VND122.58 trillion ($5.4 billion). Business operations will strictly follow safety standards and be environmentally-friendly. Most of all, LSP places importance on concern for society, the community, and the environment, and will coexist and sustainably grow in Vietnam. Employment opportunities will also uplift the quality of life for all stakeholders.

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