|The model of Long Sơn Petrochemicals Complex in the future. — Photo baobariavungtau.com.vn|
HÀ NỘI — Thailand’s SCG Group wants entire stake of Việt Nam Oil and Gas Group (PVN) to own 100 per cent of the Long Sơn Petrochemicals (LSP) Complex in the southern province of Bà Rịa —Vũng Tàu.
This is one of the proposals SCG has sent to Prime Minister Nguyễn Xuân Phúc. The group has asked to acquire 29 per cent of PVN’s stake at LSP, attached with some conditions to implement the project, reported online newspaper ndh.vn.
The proposal was sent after PVN had difficulty arranging its loan portion in the joint venture and in procedures for approving bidding packages. This has a direct impact on the progress of the Engineering Procurement and Construction (EPC) contract and as well as the project. Therefore, the bidding package has had to be extended many times since Long Sơn Petrochemical Company Limited approved the results regarding the selection of EPC contractor in early July 2017.
If this proposal is approved by the PM, SCG will own 100 per cent of the US$5.4 billion petrochemical project.
LSP Complex was licensed in 2008 with an investment capital of $3.7 billion and participation of PVN, Việt Nam National Chemical Group and SCG Group. After many difficulties, Vinachem withdrew the capital and was replaced by Qatar Petroleum International (QPI). In April 2017, QPI also decided to withdraw all capital at LSP and transferred the amount of stake to SCG. As a result, SCG’s capital in LSP increased from 46 per cent to 71 per cent.
Initially, the project had an investment of about $3.7 billion, which was increased to more than $4 billion, and finally to the current investment of $5.4 billion. Long Sơn is the third petrochemical complex in Việt Nam, following Dung Quất oil refinery and Nghi Sơn oil refinery and petrochemical complex.
LSP is a key petrol and oil project of the Vietnamese Government. It is designed to have a capacity of 1.6 million tonnes of olefin per year.
Located on 464ha in the LSP Industrial Park, the project is expected to be operational by 2022.
During the construction process, the project is expected to create some 15,000-20,000 jobs. Once complete, it will create more than 1,000 jobs and is estimated to contribute some $115 million a year to the local budget. — VNS