SCG updates investment in Long Son Petrochemicals, Vietnam with an aim for sustainable development in ASEAN

Stocks and Financial Services Press Releases Friday July 14, 2017 10:31
Bangkok--14 Jul--SCG

Vina SCG Chemicals Co., Ltd. (VSCG), wholly-owned subsidiary by SCG, has approved to proceed with the investment of the Long Son Petrochemicals Company Limited (LSP). LSP will issue the Letter of Award to key contractors on July 14, 2017 and the final contract signing is expected to be in the second half of 2017. The estimated four and a half year construction of the complex is managed under the consolidated turnkey lump sum project format, with commercial operation expected by the first half of 2022.

The total project cost of LSP is approximately US$5.4 billion or 188 billion Baht, and financing will be with a combination of foreign denominated debt and equity at 60:40. The annual CAPEX will be distributed across the project period. SCG's indirect stake in LSP is 71% (via Vina SCG Chemicals Co., Ltd. 53% and Thai Plastic and Chemicals Public Company Limited 18%), while Vietnam Oil and Gas Group (PetroVietnam) holds 29%.

LSP is positioned as Vietnam's first petrochemicals complex. The project possesses competitive aspects ranging from integration, economies of scale, and flexible feedstock. Non-petrochemical supporting infrastructure such as a deep sea port and other facilities are also included at approximately 30% of the total investment cost.

At the heart of the project is a one million ton ethylene cracker with flexible gas and naphtha feed to yield in total olefins capacity of up to 1.6 million tons per year depending on the feedstock mix. The technology of LSP will be comprised of proven processes from leading world class licensors. The feedstock will consist of locally sourced ethane, and imported propane and naphtha, on secured contracts and at competitive market prices. This will facilitate the highly flexible cracker that is able to utilize gas up to 80% for cost optimization. Furthermore, the downstream polyolefins operations will be of similar scale to the cracker, consisting of High Density Polyethylene (HDPE), Linear Low Density Polyethylene (LLDPE) and Polypropylene (PP) plants.

LSP is located just 100 km from Ho Chi Minh City, the main market and economic heartland of Vietnam. In 2016, Vietnam imported approximately 2.3 million tons of polyolefins products with expectation in continuous growth in the future. The project is strategically committed to SCG's vison in pursuit of becoming the region's sustainable business leader to enhance the quality of life for all.


Latest Press Release

PT Bank Rakyat Indonesia Outlook Revised To Positive On Resilient Asset #BB+/B# Ratings Affirmed

SINGAPORE (S&P Global Ratings) Nov. 17, 2017--S&P Global Ratings today revised its outlook on PT Bank Rakyat Indonesia (Persero) Tbk. (BRI) to positive from stable. At the same time, we affirmed our 'BB+' long-term and 'B' short-term issuer...

Photo Release: ACMF Conference on Regional Connectivity for Sustainable Growth

Executives of ASEAN capital market regulators attended the ASEAN Capital Markets Forum (ACMF) Conference 2017 under the theme, ""Strengthening ASEAN Capital Market Connectivity,"" highlighting ACMF's concerted efforts towards regional collaboration for...

MyState Bank Ltd. Ratings Lowered To #BBB-/A-3#, Then Withdrawn At Issuer#s Request

MELBOURNE (S&P Global Ratings) Nov. 17, 2017--S&P Global Ratings today said it has lowered its long-term issuer credit rating on Tasmania-based MyState Bank Ltd. (MSB) to 'BBB-' from 'BBB' and its short-term issuer credit rating to 'A-3' from...

Iceland-Based Islandsbanki#s Proposed Tier-2 Subordinated Notes Rated #BBB-#

STOCKHOLM (S&P Global Ratings) Nov. 17, 2017--S&P Global Ratings today said that it has assigned its 'BBB-' long-term issue rating to the proposed Swedish krona-denominated tier-2 nondeferrable, subordinated notes of Islandsbanki hf...

Prudential appoints Aman Kapoor as Thailands new CMO

Prudential Life Assurance (Thailand) Public Company Limited (PLT) has appointed Aman Kapoor as Chief Marketing Officer. As CMO, Aman will be responsible for leading the development and delivery of the commercial and customer marketing strategy to support...

Related Topics