$5.4 billion invested in Long Son petrochemical complex
$5.4 billion invested in Long Son petrochemical complex
The Viet Nam Oil and Gas Group (PVN) signed important documents related to the Long Son Petrochemical (LSP) complex on Wednesday.
These documents include the joint venture contract and company charter ownership transfer agreement with Qatar Petroleum Viet Nam Limited and Thailand’s Siam Cement Group (SCG).
The project has total investment capital of US$5.4 billion, applying modern technologies, operating safely, meeting environmental protection requirements and ensuring high-quality production of petrochemical products such as polyethylene and polypropylene, PVN board member Phan Dinh Duc reported.
The LSP project is expected to contribute $115 million per year to the southern province of Ba Ria-Vung Tau and the national budget in the 30 year-period from its operation. Besides this, it will create some 15,000-20,000 jobs during construction and more than 1,000 jobs when commercial operations commence.
“This successful negotiation and signing of documents among partners will be a decisive milestone towards the operation of the project in 2021,” Duc said.
During the signing ceremony, SCG’s representative revealed that the group will sign the agreement on the joint venture contract of the modified company charter of Long Son Petrochemical Company Limited at the next stage.
Shareholders of Long Son will be part of the final investment decision and award contracts to Engineering Procurement and Construction contractors in the second quarter of this year.
On the same day, PVN’s Petrovietnam Gas also issued a letter of commitment to ensure a source of ethanol material for the project.
Located some 100km from HCM City, LSP is the first petrochemical complex in Viet Nam. The project’s goal is to develop a one million-tonne ethylene cracker with flexible gas and naphtha feed, creating an olefin capacity of up to 1.6 million tonnes per year.
SCG is a century-old Thai corporation with interests in cement production, construction materials, chemicals and packaging. Regionally, it has investments in Indonesia, Viet Nam and Cambodia. By the end of 2016, SCG had invested more than $800 million through a number of projects in Viet Nam.
