Thai conglomerate Siam Cement Group (SCG) will resume a long-delayed refinery project worth $4.5 billion in Vietnam’s southern province of Ba Ria-Vung Tau in the fourth quarter of this year, local media reported.
The Southern Petrochemical Complex Project of Long Son Petrochemical Company Limited had the site clearance finished and is preparing to restart the construction at the year-end, said Dhep Vongvanich, SCG country director-Vietnam, at a meeting last weekend with Dinh La Thang, chief of Ho Chi Minh City’ party commission.
The project has two unsolved problems, which are the gas supply of state-run energy firm PetroVietnam (PVN) and the capital to be contributed by PVN. The Vietnamese Ministry of Finance will decide on PVN’s paid-up capital later this month.
SCG, PetroVietnam and Qatar Petroleum kick-started the construction of the complex in 2008, stretching on an area of 460 hectares. Ten plants would be built on an area of 398 ha with an annual capacity of processing 2.7 million tons per year. Its products will be the input for industries such as packaging, fiber, automobile and electronics.
The site will also include support facilities, including a port, warehouses and a power plant. Long Son Petrochemical is designed to be able to use either gas or naphtha as feedstock.
The construction came to a standstill following Qatar’s exit in 2015. SCG has found new partners for the project, said Dhep Vongvanich, without giving specific names.
SCG holds 46% in the Long Son Petrochemicals Project, in which Qatar Petroleum previously had a 25% stake. The remaining 29% belongs to PetroVietnam.
The Thai conglomerate had poured over $700 million into Vietnam as of the end of 2015, through the acquisitions of tile producer Prime Group and majority stakes in several construction material and packaging firms.