Thai SGC eyes funding for Vietnam petchem project this year

03 February 2010 07:16  [Source: ICIS news]

MUMBAI (ICIS news)--Thai conglomerate Siam Cement Group (SCG) expects to secure financing for its joint-venture (JV) cracker and derivatives project in Vietnam within the year, a company source said on Wednesday.

Long Son Petrochemicals (LSP), a JV between SCG, Qatar Petroleum International, Petrovietnam and Vietnam National Chemical Corp, was negotiating with potential lenders, the source said.

“Amid the current crisis and the nature of project finance, only a project with strong government support could get funding. LSP is working with relevant authorities for government supports to secure financing within 2010,” the source said.

“The project aims to seek financing from export credit agencies, international banks and financial institutions,” the source added.

The project, located in the province of Ba Ria - Vung Tao in Long Son Island and estimated to cost up to $4bn (€2.6bn), would include a 1.4m tonne/year olefins cracker, 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) plant.

The companies expect to complete the project in 2014.

($1 = €0.72)

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By: Malini Hariharan
+65 6780 4359

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