SCG, Qatar Petroleum announce $3.5-4bn Vietnam petchem project

25 November 2009 08:14  [Source: ICIS news]

SINGAPORE (ICIS news)--Thai conglomerate Siam Cement Group (SCG) said on Wednesday it has signed a deal with Middle Eastern producer Qatar Petroleum International (QPI) to build a $3.5-4bn (€2.3-2.7bn) petrochemical project in southern Vietnam.

In a disclosure to The Stock Exchange of Thailand, SCG said the project in the province of Ba Ria – Vung Tau, Long Son Island would include a 1.4m tonne/year olefins cracker that is highly flexible in the use of feedstock gas (ethane and liquefied petroleum gas) or naphtha.

The petrochemical complex will also have a 400,000 tonne/year high-density polyethylene (HDPE) unit, a 450,000 tonne/year polypropylene (PP) plant and a 400,000 tonne/year linear low-density PE (LLDPE) that would be fully integrated into the cracker.

The complex includes PVC-related capacity including Chlor-Alkali, ethylene dichloride (EDC) and vinyl chloride monomer (VCM) facilities at the site, which is 100km away from Ho Chi Min City, the statement added.

“It is acknowledged that QPI will be providing competitive feedstock to the petrochemicals project,” SCG said.

SCG, QPI and an unnamed international trading firm would have a 71% share of the project while their Vietnamese partners – Petrovietnam and Vietnam National Chemical Corp – would hold the remaining 29% stake, the company said.

“The total investment cost includes supporting infrastructures such as shipping ports, power plant, utilities, and storage facilities,” SCG added.

SCG said further details of the petrochemicals complex would be known in the middle of next year.

($1 = €0.67)

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By: Pearl Bantillo
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