$5 billion petrochemical complex restarts operations

$5 billion petrochemical complex restarts operations

With total investment exceeding $5 billion, the project includes an olefins plant with an annual capacity of 1.35 million tonnes, three polyolefin plants with a combined annual capacity of 1.4 million tonnes, as well as tanks, port facilities and other supporting infrastructure in Long Sơn Commune, HCM City.

Long Sơn Petrochemical Complex seen from above. — Photo courtesy of LSP

Long Sơn Petrochemicals Co., Ltd. (LSP) has announced the restart of operations at the Long Sơn Petrochemical Complex on August 20, following more than 10 months of suspension.

The move comes amid falling crude oil prices, which have improved profit margins between inputs and outputs, creating favourable conditions for the company to seize opportunities, maintain customer links and secure supply chains in a volatile global market.

The Long Sơn Petrochemical Complex is a flagship project of SCG Chemicals (SCGC), a subsidiary of Thailand’s SCG Group, and is Việt Nam’s first fully integrated petrochemical facility.

With total investment exceeding US$5 billion, the project includes an olefins plant with an annual capacity of 1.35 million tonnes, three polyolefin plants with a combined annual capacity of 1.4 million tonnes, as well as tanks, port facilities and other supporting infrastructure in Long Sơn Commune, HCM City.

Alongside the restart, LSP is implementing the Long Sơn Petrochemical Enhancement Project (LSPE) with an investment of $500 million, expected to be completed by 2027.

This strategic project aims to supplement ethane into the existing feedstock mix of naphtha and propane, with the goal of cutting operating costs by more than 30 per cent, reducing greenhouse gas emissions and strengthening long-term competitiveness.

Key components include the construction of two cryogenic ethane storage tanks (each with a capacity of 55,000 tonnes), upgrading production facilities to use up to 70 per cent ethane feedstock, and importing one million tonnes of ethane per year from the United States using five specialised carriers with a capacity of 50,000 tonnes each.

Kulachet Dharachandra, General Director of LSP, said the petrochemical market in the second half of 2025 remained highly competitive, but diversifying feedstock sources with ethane represented a strategic step to enhance competitiveness and promote sustainable growth.

He emphasised that the LSPE project would create more than 1,000 jobs during the construction phase, while long-term ethane import contracts would also help strengthen trade and economic ties between Việt Nam and the United States. 

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