2 March 2017
DETAILS
The Siam Cement Public Company Limited
announces that
Vina SCG Chemicals Co., Ltd. (or “VSCG”),
its wholly-owned subsidiary,
has entered into the share purchase agreement
with QPI Vietnam Limited (“QPIV”),
a subsidiary of Qatar Petroleum
to acquire all of QPIV’s 25% equity stake
in Long Son Petrochemicals Company Limited (“LSP”).
This equity transaction,
valued at US$36.1 million
or approximately 1,300 million Baht,
will increase SCC’s direct and indirect stake
in LSP to 71% (from 46%),
while the Vietnamese parties hold 29%.
LSP is positioned
as Vietnam’s first petrochemicals complex.
The project possesses competitive aspects
ranging from integration, economies of scale,
and competitive feedstock flexibility.
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 olefins cracker is equipped
with high flexibility to utilize gas up to 80%,
of total feedstock, for cost optimization
and will be fully integrated
to the downstream polyolefins (PE / PP)
capacities of similar scale.
The project will be financed
with a combination of equity and debt,
whereby the final investment decision (FID)
is expected by H1, 2017 and
the CAPEX outlay will be finalized afterwards.
With a five year construction period,
the start-up is expected in 2021.
LSP is located just 100 km from Ho Chi Minh City,
the main market and economic heartland of Vietnam.
In 2015, Vietnam imported
more than 2 million tons of polyolefins,
with future high single digit growth rates anticipated.
WWW.CHEMWINFO.COM BY KHUN PHICHAI
