The plan was outlined in SCG's recently released QII and first-half 2025 financial report. The decision comes as oil prices have cooled recently. Brent crude is currently trading around 63 USD per barrel, down nearly 21% and 12% compared to the same period last year and the beginning of this year, respectively.
Thammasak Sethaudom, President and CEO of SCG, noted positive signs of recovery in the petrochemical sector. "The price spreads of petrochemical products have also started to improve thanks to lower crude oil costs," he stated.
The Long Son Petrochemicals (LSP) complex received its investment certificate in 7/2008 and has undergone many changes. In 6/2018, SCG became the sole investor, increasing the investment capital to over 5 billion USD, making it the largest foreign direct investment project in the former Ba Ria - Vung Tau province.
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Tank farm area of the Long Son Petrochemicals complex. Photo: LSP |
Tank farm area of the Long Son Petrochemicals complex. Photo: LSP
LSP includes an upstream olefin plant; three downstream polyolefin plants (HDPE, LLDPE, and PP); and related infrastructure such as a port cluster. The complex has a total design capacity of 1.4 million tons of olefin resin per year, producing a variety of petrochemical products, including essential plastic materials such as high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and polypropylene (PP).
The complex's products also serve as basic materials for various applications, including packaging, agricultural production, electrical equipment, and auto parts. In 2024, after a month of commercial operation, LSP suspended operations in mid-October to control costs and await favorable market conditions.
SCG also announced an additional investment of 700 million USD from internal funds, primarily for the construction of an ethane receiving terminal and related infrastructure. The project is expected to be completed in 2027, helping LSP improve input costs and competitiveness by expanding its raw material options from two to three types: naphtha, propane, and ethane. Ethane also helps reduce CO2 emissions during production.
In the first half of the year, SCG recorded sales revenue of 16,590 billion Vietnamese dong, equivalent to 634 million USD in Vietnam. This result represents a 1% decrease compared to the same period in 2024, indicating relatively stable business operations amid fluctuating market conditions.
Vien Thong
