Siam Cement to pick 25% more in Vietnam’s Long Son Petrochem for $36.1m

Visual from Siam Cement Group website

Siam Cement Public Company (SCG), through its Vietnam-based subsidiary Vina SCG Chemicals, has entered an agreement to acquire all of the 25 per cent holding in Long Son Petrochemicals held by QPI Vietnam Limited, a subsidiary of Qatar Petroleum.

If the transaction goes through, SCG will increase its stake at Long Son from the current 46 per cent to 71 per cent, it said in a filing.

The Vietnamese partner of the petrochemicals complex, energy giant PetroVietnam, holds the remaining 29 per cent.

The share purchase is valued at about $36.1 million.

Located 100 km from Vietnam’s commercial hub Ho Chi Minh City, Long Son is positioned as the country’s first petrochemical development, according to SCG.

“The project possesses competitive aspects ranging from integration, economies of scale, and competitive feedstock flexibility. Non-petrochemical supporting infrastructure such as a deep sea port and other facilities are also included at approximately 30 per cent of the total investment cost,” it said in the filing.

Licensed in 2008, the joint venture had earlier plan to commence construction in 2014 with commercial operation slated for 2017. However, the project was delayed, reportedly due to site clearance issues, and the Qatar company looked to exit the JV.

It was said earlier this year that SCG was searching for other partners to work on resuming the $4.5 billion petrochemical complex.

Completion of the project is expected in 2021.

Long Son is a one million tonne ethylene cracker with flexible gas and naphtha feed to yield in total olefins capacity of up to 1.6 million tonnes per year depending on the feedstock mix. The olefins cracker is equipped with high flexibility to utilise gas up to 80 per cent, of total feedstock, for cost optimisation and will be fully integrated to the downstream polyolefins (PE / PP) capacities of similar scale.

The project will be financed through a combination of equity and debt.

Also read:

Vietnam: PV Oil to dispose 44% stake to strategic investors

Vietnam plans 2017 IPO for its first oil refinery operator Binh Son

Thai Siam Cement Group seeks new investor for Vietnam’s petrochemical complex

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.