18:32 (GMT +7) - Wednesday 20/09/2017

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Renewed effort

Released at: 11:04, 12/09/2017

Renewed effort

Photo: SCG

Thailand’s SCG last month signed an MoU confirming a partnership with PetroVietnam in the Long Son Petrochemicals Co. (LSP). Mr. Roongrote Rangsiyopash, SCG’s President & CEO, disclosed more details about the project with VET.

by Ha Anh

■ What does the project mean for SCG’s businesses in Vietnam?

Mr. Roongrote Rangsiyopash, President and CEO of SCGIt was an important signing ceremony on August 18, as this is SCG’s first petrochemical project in Vietnam. LSP is located in Vung Tau in the southern province of Ba Ria Vung Tau, near Ho Chi Minh City. It is a joint venture project between PetroVietnam and SCG. The project is valued at $5.4 billion, with an olefin production capacity of 1.6 million tons per year. The project is expected to come into operation in 2022. SCG also takes pride in being a good corporate citizen in Vietnam. LSP is an important joint venture with one of Vietnam’s major corporations and is strongly supported by both governments. It is also a joint project between two of the largest private investors in ASEAN.           

■ The project has been stalled for many years due to financial issues with the initial investors. How does this affect SCG’s participation?

The project has been carried out for several years but has faced certain issues, such as the withdrawal of the Qatari investor due to falling oil prices. SCG’s determination has now contributed to project progress in terms of investment capital and technology.

I want to stress that the Long Son Petrochemical project is the first of its kind by SCG in Vietnam. It will also provide materials for Vietnam’s domestic industry and set the foundations for the country’s petrochemical industry and support industries, and therefore push the industry forward in ASEAN. Besides petrochemicals, related industries such as rubber production and building materials can also develop from this project in the future.

■ What did Vietnam’s Prime Minister and PetroVietnam commit to with SCG during meetings with the group about the project?

At the signing ceremony, Prime Minister Nguyen Xuan Phuc promised to implement the project at the earliest possible time. PetroVietnam leaders, meanwhile, also committed to working on the project. I am very confident. And this is the first time that SCG has invested in such a huge project in Vietnam.

SCG has also signed agreements with PetroVietnam on two other issues: finance and technology, for the project to develop in the future. These two MoUs were witnessed by the two countries’ Prime Ministers during Prime Minister Phuc’s visit to Thailand.

■ What is the current status of LSP and can you tell us about SCG’s future plans? 

The total investment in the project is $5.4 billion, in which SCG accounts for 71 per cent and PetroVietnam 29 per cent. A factory is now being constructed, and project completion is expected in around four or five years.

I’d like to note that this is the biggest project of SCG in the ASEAN region and is of world-class standards. World-class standards mean a high level of technology, petrochemical technology, and factory management. SCG always focuses on environmentally-friendly and society-friendly technology, which are both significant strengths of SCG’s investments in Vietnam.

Vietnam is a market of great potential, not only because of its size but also because of the quality of its human resources. It has recorded steady economic growth over recent years and we are proud and excited to be a part of this development. SCG’s investment in the project once again affirms our commitment to Vietnam and its future.

SCG signed an MoU on August 18 with PetroVietnam to confirm their cooperation in a partnership, with investment of $5.4 billion in the Long Son Petrochemicals Co (LSP). The MoU signing ceremony was witnessed by Prime Minister Nguyen Xuan Phuc and Thai Prime Minister General Prayut Chan-o-cha during Prime Minster Phuc’s visit to Thailand. Positioned as Vietnam’s first petrochemicals complex, LSP, located in southern Ba Ria Vung Tau province, will provide important supply to the manufacturing industry, which will support Vietnam’s industrial and economic development. LSP’s total olefins capacity is up to 1.6 million tons per year.

SCG is a leading conglomerate in the ASEAN region, with more than 103 years of history. It currently has 21 subsidiaries in Vietnam with more than 8,300 employees, in three business lines: Petrochemicals, Packaging, and Cement-Building Materials.

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