14 July 2017
DETAILS
The Siam Cement Public Company Limited (or “SCC”)
announces that
Vina SCG Chemicals Co., Ltd. (or “VSCG”),
its wholly-owned subsidiary,
has approved to proceed with the investment of
the Long Son Petrochemicals Company Limited (“LSP”).
LSP will issue the Letter of Award to key contractors
on July 14, 2017 and the final contract signing
is expected to be in the second half of 2017.
The estimated four and a half year construction
of the complex is managed under
the consolidated turnkey lump sum project format,
with commercial operation expected by the first half of 2022.
The total project cost of LSP
is approximately US$5.4 billion or 188 billion Baht,
and financing will be with a combination of
foreign denominated debt and equity at 60:40.
The annual CAPEX will be distributed across the project period.
SCC’s indirect stake in LSP is 71%
(via Vina SCG Chemicals Co., Ltd. 53% and
Thai Plastic and Chemicals Public Company Limited 18%),
while
Vietnam Oil and Gas Group (PetroVietnam) holds 29%.
LSP is positioned as Vietnam’s first petrochemicals complex.
The project possesses competitive aspects ranging from
integration, economies of scale, and flexible feedstock.
Non-petrochemical supporting infrastructure
such as a deep sea port and other facilities
are also included at approximately 30%
of the total investment cost.
At the heart of the project is a
* one million ton ethylene cracker
with flexible gas and naphtha feed to yield
in total olefins capacity of up to 1.6 million tons per year
depending on the feedstock mix.
* The technology of LSP will be comprised of proven processes
from leading world class licensors.
The feedstock will consist of locally sourced ethane,
and imported propane and naphtha, on secured contracts
and at competitive market prices.
This will facilitate the highly flexible cracker
that is able to utilize gas up to 80% for cost optimization.
* Furthermore, the downstream polyolefins operations
will be of similar scale to the cracker, consisting of
** High Density Polyethylene (HDPE),
** Linear Low Density Polyethylene (LLDPE) and
** Polypropylene (PP) plants.
LSP is located just 100 km from Ho Chi Minh City,
the main market and economic heartland of Vietnam.
In 2016, Vietnam imported
approximately 2.3 million tons of polyolefins products.
Source
WWW.CHEMWINFO.COM BY KHUN PHICHAI
