SCG inks loans worth $3.2 billion, ready to start construction of Vietnam petrochemicals complex

Corporate August 06, 2018 17:23

By The Nation

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SCG has pushed forward Vietnam’s first fully integrated petrochemical-complex project, Long Son Petrochemicals (LSP), by recently signing loan agreements worth over US$3.2 billion (Bt106 billion) with six leading financial institutions. 

The project will commence construction during the current quarter and is expected to start commercial operations in the first half of 2023 to meet Vietnam’s soaring demand which is as high as 2.3 million tonnes per year, SCG said on Monday.

Such demand is projected to expand continuously thanks to strong Vietnam’s economic growth.

The group’s president, RoongroteRangsiyopash, described the Long Son Petrochemicals project as a “world-scale petrochemical complex” with an investment of around $5.4 billion.

It is currently SCG’s flagship investment, he said, adding that the venture will increase competitive advantages of SCG’s Chemicals Business in Southeast Asia. 

“Furthermore, the project is equipped with world-class advanced technologies which allow for high flexibility to utilise raw materials, resulting in increased competitive advantage. The project also leverages digital technologies to create innovations for better products, services, and solutions for customers,” he explained.

The six loan agreements are made in US dollars and have been signed with Sumitomo Mitsui Banking Corp, Mizuho Bank, Bangkok Bank, Krungthai Bank, Siam Commercial Bank and Export-Import Bank of Thailand. 

The credit facilities are worth more than $3.2 billion in total, with a tenor of about 14 years. 

Sumitomo Mitsui Banking is the project’s financial adviser.

LSP is located in VungTau province’s Ba Ria, which is 100 kilometres from Ho Chi Minh City. 

Its olefins production capacity will be 1.6 million tonnes per year for manufacturing high-density polyethylene, linear low-density polyethylene, and polypropylene. 

The project will be maintained and operated with strict procedures to achieve world-class safety standards and environmentally friendly practices to sustain activities and support a peaceful coexistence with Vietnam’s communities and society, SCG said.