Vietnam’s Ministry of Planning and Investment (MPI) has proposed Prime Minister Nguyen Xuan Phuc review investors’ financial capacities at a US$3.7-billion petrochemical complex invested by Thailand SCG Group.
|Long Son Petrochemical Complex (LSP) kicked off in February 2018. Photo: LSP|
The MPI raised the question in a proposal analyzing the feasibility of the project before the government approves the increase of investment to US$5.1 billion.
The government should also check the technical adjustment and capacity increase together with the capital hike, Tuoi Tre newspaper reported.
Long Son Petrochemical Complex (LSP), located in the southern province of Ba Ria-Vung Tau, is positioned as Vietnam’s first integrated petrochemical complex to produce a total annual capacity of 2 million tons of olefins (high-density synthetic fibers), polyetylen, and ploypropylen.
Kicked off in 2008 by a joint venture between SCG, Vietnam National Oil and Gas Group (PetroVietnam), and Qatar Petroleum, the project came into a stall due to global recession. In 2015, the Qatari partner withdrew and SCG bought its stake in 2017.
In 2018, SCG also acquired PetroVietnam’s 29% stake to become the sole owner. The project was resumed in February 2018.
In a meeting with Vietnam’s Deputy Prime Minister Trinh Dinh Dung last month, Chairman and CEO of SCG Group Roongrote Rangsiyopash said that the investor has fulfilled 24% of the construction progress.
LSP is scheduled to be put into operation by the end of 2022.
SCG Group announced that it signed loan contracts worth US$3.2 billion with six international banks namely Sumitomo Mitsui Banking Corporation, Mizuho Bank, Bangkok Bank, Krung Thai Bank, Siam Commercial Bank, and Export–Import Bank of Thailand (EXIM Thailand, according to local media.