According to newswire Bangkok Post, SCG now owns 71 per cent through its wholly-owned subsidiaries Vina SCG Chemicals Co., Ltd. (SCG Chemical) and Thai Plastic and Chemicals in the joint venture, while Vietnam’s oil and gas group PetroVietnam holds the remaining 29 per cent.
The move marks big progress on the much-anticipated Long Son petrochemical complex. Accordingly, the construction is expected to re-start this year and come into operation in the first half of 2022.
Earlier in March, SCG completed the purchase of a 25-per cent stake in the project from Qatar Petroleum International (QPI), its ex-partner in the project.
The project now has a total investment capital sum of $5.4 billion, up 20 per cent from its initial plan of $4.5 billion due to rising construction costs. About 30 per cent of the total investment will be used for the development of a deep sea port and other facilities to support the petrochemical plant.
It will be installed with advanced technology, meeting environmental protection requirements and ensuring the production of high-quality products, such as PP and PE. The project will create about 15,000-20,000 jobs during its construction and over 1,000 jobs when put into commercial operation.
Once completed, it will be one of the largest of its kind in Vietnam, with a production capacity of 1.6 million tonnes of olefins per year.
Licensed in 2008, the complex was invested by a joint venture of SCG, QPI, and PetroVietnam.
It was previously slated to begin construction in 2014 and be completed in 2017. However, the construction was delayed due to site clearance issues. As further obstacle, in December 2015, the Qatari investor officially withdrew from the project due to the restructuring of its development strategy. QPI and the two remaining investors failed to reach a compromise on capital transfer, leading to a serious delay in the project’s progress.
Up until now, the investor transferred a deposit of approximately $41.95 million to the Ba Ria-Vung Tau People’s Committee and the province finished the site clearance, relocating all 390 households from the main area of the 464-hectare project.