December 24, 2024 – In a strategic move to bolster production efficiency and cost competitiveness, Siam Cement Group (SCG) of Thailand has announced a collaboration with Vietnam Oil and Gas Group (PetroVietnam) for the expansion of the Long Son Petrochemical (LSP) complex in Ba Ria-Vung Tau province, southern Vietnam. The highlight of this partnership is a $700 million investment in the construction of a new ethane storage facility.
During a high-level meeting, SCG’s President and CEO, Tammasak, and PetroVietnam’s Chairman, Le Manh Hung, reached a strong consensus on the cooperation. Hung emphasized that PetroVietnam would fully support the expansion project, providing comprehensive assistance in material supply, equipment maintenance, and repair, as well as actively participating in all stages of the expansion.
According to AsiaMB, the LSP complex, which commenced trial operations in December 2023, officially began commercial operations on September 30 this year. Focusing on the production of polyethylene and polypropylene using naphtha and propane as main raw materials, the complex faced operational challenges just two weeks after launch due to rising production costs and weak market demand, leading to a temporary shutdown. In response to the severe industry oversupply, SCG decided to expand the ethane storage facility and increase the proportion of ethane in its raw materials to reduce costs and enhance market competitiveness. The LSP complex is expected to reach an annual production capacity of 1.4 million tons upon full operation.
This expansion project not only signifies a deepening of the partnership between SCG and PetroVietnam but also demonstrates their firm commitment to addressing market challenges and pursuing common development. With the smooth progress of the expansion, the LSP complex is poised to revitalize in the future, contributing to the prosperous development of the chemical industries in both countries.