In a press release on 20/8, Long Son Petrochemicals stated that amidst ongoing global market challenges, the restart of the entire complex is a proactive step to seize opportunities.
Concurrently, the company is implementing a 500 million USD project to add ethane gas to its feedstock of naphtha and propane. This aims to reduce operating costs by over 30%, lower greenhouse gas emissions, and enhance long-term competitiveness.
Key aspects of the project include importing 1 million tons of ethane annually from the US; employing five specialized carriers with a capacity of 50,000 tons each; constructing two cryogenic storage tanks with a capacity of 55,000 tons each; and upgrading the production facility to utilize up to 70% ethane feedstock, while maintaining flexibility with naphtha and propane.
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Aerial view of the Long Son Petrochemicals complex. Photo: LSP |
Aerial view of the Long Son Petrochemicals complex. Photo: LSP
Kulachet Dharachandra, general director of Long Son Petrochemicals, acknowledged the ongoing volatility and competitive pressures in the petrochemical market for the second half of the year. However, the decline in crude oil prices has slightly improved profit margins, enabling the company to restart the complex and maintain connections with customers and the supply chain.
He added that diversifying the feedstock with ethane gas is a strategic move, projected to create over 1,000 jobs during the construction phase and contribute to economic development in Long Son commune. The long-term ethane supply contract is also expected to strengthen economic and trade relations between Vietnam and the US.
Located in Long Son commune, TP HCM, the Long Son Petrochemicals complex is a key project of SCG Chemicals (SCGC), a subsidiary of the Thai conglomerate SCG. It is the first integrated petrochemical complex in Vietnam, comprising a 1.35 million ton per year olefins plant, three polyolefin plants with a total capacity of 1.4 million tons per year, along with a tank farm, port, and related utilities. The total investment announced is over 5 billion USD.
Truong Ha
