Thai industrial conglomerate Siam Cement Group (SCG) has proposed to acquire the 29 per cent stake in Vientam’s Long Son Petrochemicals (LSP) Complex that it does not currently own from Vietnam Oil and Gas Group (PetroVietnam).
According to Vietnam’s latest 2017 business results and 2018 plan report released on January 19, SCG has sent a letter to the Vietnamese government to consider its desire to acquire the petrochemicals complex. The group has also proposed some conditions to revive the long-delayed project. These terms, however, were not disclosed by PetroVietnam.
If the proposal is approved, the Thai cement giant will own 100 per cent of the $5.4-billion LSP complex.
The complex was licensed in 2008 with an initial investment capital of $3.7 billion and with the participation of three groups: PetroVietnam, Vietnam Chemical Group (Vinachem) and SCG. VinaChem, however, withdrew its capital and was replaced by Qatar Petroleum International (QPI).
In April 2017, QPI also decided to withdraw its capital from LSP. At that time, SCG, through its wholly-owned subsidiary Vina SCG Chemicals (VSCG), acquired a 25 per cent stake from QPI in LSP Limited, the investor of the LSP Complex, according to a statement published on SCG’s website.
Located in Southern Ba Ria-Vung Tau province in Vietnam, LSP targets to develop a 1 million ton ethylene cracker with a flexible gas and naphtha feed, creating an olefin capacity of up to 1.6 million tons per year. As per SCG’s plan, the complex is scheduled to start commercial operations in the first half of 2022.
A century-old Thai corporation with interests in cement production, construction materials, chemicals, and packaging, SCG entered Vietnam in 1992.