Vina SCG Chemicals Co Ltd (VSCG), a wholly owned subsidiary of SCG, has approved a plan for an investment with Long Son Petrochemicals Company Limited (LSP).
LSP will issue a letter of award to key contractors on Friday 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 (Bt188 billion), and financing will be with a combination of foreign denominated debt and equity at 60:40.
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 per cent of the total investment cost.