LSPCL – Long Son Petrochemicals Complex – Ba Ria-Vung Tau - Project Profile
"LSPCL – Long Son Petrochemicals Complex – Ba Ria-Vung Tau - Project Profile" contains information on the scope of the project including project overview and location. The profile also details project ownership and funding, gives a full project description, as well as information on contracts, tendering and key project contacts.
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Long Son Petrochemical Company Limited (LSPCL), a joint venture of Siam Cement Group (SCG), Thai Plastic and Chemicals (TPC) of Vietnam, and PetroVietnam, is undertaking the development of a petrochemicals complex on Long Son Island, Ba Ria-Vung Tau Province, Vietnam.
The project involves the construction of a greenfield petrochemical complex on 464ha site area. The complex will be built into six stages.
The complex’s capacity will consist of 1.65 million tonnes per annum (MTPA) of olefins plant from a flexible cracker utilizing feedstock as ethane, propane, and naphtha; 1.45MTPA of polyolefins plant; a 280,000 tonnes per annum (TPA) chloralkali plant with supporting infrastructure, such as warehouse, port, jetty, power plant and other utilities. Furthermore, the cracker will be fully integrated with a wide range of downstream products, including polyethylene (PE), polypropylene (PP) and vinyl chloride monomer (VCM). The project is designed to be able to use either gas or naphtha as feedstock.
In July 2008, Vietnam government granted a license to LSPCL to build a petrochemical complex on Long Son Island.
The project has been delayed for a few years since the signing of a framework agreement in 2009, as the financial crisis made it difficult to finalize financing.
On February 9, 2012, SCG, TPC, Qatar Petroleum International (QPI), Vietnam and PetroVietnam signed a joint venture agreement for the investment in the project.
In August 2013, LSPCL and the People’s Committee of Vung Tau City signed the advance rental agreement for ground clearance of the project.
Royal HaskoningDHV has been appointed as a feasibility study consultant, Sumitomo Mitsui as a financial adviser, and local Partner Portcoast as Basic Design of the seaport facilities for the project.
In the fourth quarter of 2013, SCG issued bids for engineering, procurement and construction (EPC) contractor with a set timeline to award the contract in 2014. However, the tender was canceled and it has been re-issued in 2015.
In April 2015, Ba Ria-Vung Tau Provincial People’s Committee (BVPPC) decided to transfer 318ha of required 464ha of land for the project to the developer and the remaining 146ha is with local residents which have to get resettled.
In October 2015, Qatar Petroleum International (QPI) withdrew from the project due to the restructuring of its development strategy, due to which the project is being delayed.
In late 2015, three consortia, Technip and SK E&C; Toyo Engineering and Lummus; and Daelim with KBR have submitted bids for the EPC contract.
During May 2016, SCG found a new investor replacing QPI, however, the name of the new investor is yet to be disclosed.
In October 2016, Vinachem withdrew its stake from the project while the Thai partner in the venture agreed to receive the 11% stake transferred from Vinachem after the group applied for the withdrawal. There are two Thailand partners involved in the project, namely Thailand’s SCG Group and Thailand’s Plastic and Chemicals (TPC), and it is unknown which Thai firm is pursuing the takeover.
Vinachem and its Thai partner now are striving to complete the deal to transfer the stake in the joint venture, expected to be done before the end of November 2016. However, both Vinachem and PetroVietnam declined to name the foreign partner.
In March 2017, SCG has re-signed a joint venture contract and articles of association with the Vietnam Oil and Gas Group (PetroVietnam) to become the two largest investors in the Long Son Petrochemicals (LSP) Complex.
On July 14, 2017, LSPCL issued the Letter of Award to key contractors and final contract signing is expected to be in the second half of 2017.
Construction activities scheduled to begin in 2018. Production start-up at Long Son is targeted for 2022.
The project involves the construction of a greenfield petrochemical complex on 464ha on Long Son Island in Ba Ria-Vung Tau Province of Vietnam.
The US$5,400 million project includes the following:
1. Construction of a 1.65MTPA olefins plant
2. Construction of a 1.45MTPA polyolefins plant
3. Construction of a 280,000TPA chloralkali plant
4. Construction of warehouse
5. Construction of a port
6. Construction of a jetty
7. Construction of a power plant
8. Construction of other related facilitiesReasons To Buy