MOSCOW (MRC) -- Vietnam's state-owned oil and gas firm PetroVietnam and Thailand’s Siam Cement Group (SCG) have commenced construction on the USD5.4bn Long Son Petrochemical (LSP) Complex in the southern province of Ba Ria-Vung Tau, Vietnam, as per Refiningandpetrochemicals.
The project is being developed through the Long Son Petrochemical, a joint venture between SCG and PetroVietnam. Planned to be completed in 2022, the complex will have capacity of 1.6 million tons of olefin per year. It is expected to contribute about USD60m to the provincial and the state budget annually.
SCG Roongrote Rangsiyopash president and CEO said: "SCG believes that the project will encourage the long-term investment in related industries throughout the value chain as well as improving competitive standard of products that will lessen the need of importing petrochemical products."
The project is expected to create around 20,000 jobs during construction phase and a further 1,000 technical jobs once commissioned.
Vung Tau People’s committee chairman Nguy'n Van Trinh was quoted by Viet Nam News as saying: “After beginning operation, the project will have a great impact on the development of the petrochemical industry and downstream businesses, such as automobiles, electronics, electrical equipment, packaging and other services of the province."
The complex will be equipped to produce petrochemical products, including materials for plastics with the capacity of more than 2 million tons per year.
Vietnamese Prime Minister Nguyen Xuan Phuc was reported by Vietnam Investment Review as saying: “The Vietnamese government commits to facilitating this project, which is very important not only to the national economy, but also for the strategic relation between the two countries of Vietnam and Thailand."
Recently, SCG has awarded a contract to SK E&C and TechnipFMC for the construction of the Long Son Petrochemical complex.
Under the USD2bn contract, TechnipFMC and SK E&C will provide basic design, detailed design, procurement, construction, and commissioning services for a new 950,000-tonne/year ethylene plant, which will be the largest plant at petrochemical complex, reported Oil & Gas Journal earlier.