SCG ups stake in Vietnam petchem project to 100% equity

SCG-petrochemical project

Thailand-based cement group Siam Cement Public Company Limited (SCG) has signed an agreement with Vietnam National Oil and Gas Group (PetroVietnam) to acquire the latter’s equity stake in Long Sơn Petrochemical Co Ltd. Under the agreement, SCG will acquire 29% stake for more than US$90 million.

The transaction, made through SCG’s wholly owned subsidiary in the chemicals business, Vina SCG Chemicals Co Ltd, is expected to be completed by the end of June 2018.

Upon completion of the deal, SCG’s indirect stake in Long Sơn petrochemical project will increase from 71 to 100%, of which Vina SCG Chemicals holds 82% and Thai Plastic and Chemicals Public Co. Ltd holds 18%, SCG said.

Long Sơn petrochemical project, located in Long Sơn Petrochemical Industrial Park in Vũng Tàu City, is a key petrochemical/oil project of the Vietnamese government. Long Sơn is the third petrochemical complex in Việt Nam after Dung Quất oil refinery and Nghi Sơn oil refinery and petrochemical complex.

Licensed in 2008 with an initial investment capital of US$3.7 billion, the project has raised up to US$5.4 billion in investment. It is designed to produce up to 1.6 million tonnes of olefins/year.

After the withdrawal of Vinachem, Qatar Petroleum International and now PetroVietnam, SCG is the sole investor of the project with a 100% equity stake.

The Thai group said the commencement of engineering, procurement and construction activities for the project would begin in the third quarter of 2018, with targeted commercial operations in the first half of 2023.


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