On 24 February 2018, in the Long Son Island, Vung Tau City, the ceremony was held and attended by the owner BODs ( SCG), EPC Contractors’ representatives, government cabinet minister, PVN Chairman, local Ba Ria Vung Tau provincial representatives, individuals, and reporters.
Viet Nam Prime Minister Nguyen Xuan Phuc also attended and made his speech.
Long Son Petrochemicals (LSP) previously ran through a Joint Venture (JV) between Siam Cement Group (SCG, Thailand, 71%) and PetroVietnam (PVN, 29%) and the JV had been almost 10 years without Final Investment Decision. Finally in Dec 2017, after a long deal, SCG has successfully took over all the shares of PVN to lead the LSP themselves. From the high level agreement, SCG confirmed their commitment to the project objectives and schedules for commercial operation in 2022.
Location: Long Son Island, Vung Tau, South Viet Nam; 100 km from HCMC and 30 km from Vung Tau by land transport or a short cut approx. 5 km from the Single Point, Marina Ferry Station in Dong Xuyen, Vung Tau.
LSP therefore, had started their contractual strategies and/or procurements early Jan 2018 and awarded major EPC Contracts to expat and local winners for the main scopes of work, include but not limited to the below:
1. Package A - Olefins Plant: Technip (Malaysia) + SK (Korea)
2. Package A2 - Tank Farm & Interconnecting pipelines: POSCO E&C (Korea) + PVC MS (Vietnam)
3. Package B - HDPE (High-density polyethylene) + Air Separation Unit (ASU): Samsung E&C (Korea) + Linde (Germany)
4. Package C - HDPE + ASU: Samsung E&C (Korea) + Linde (Germany)
5. Package D - LLDPE (Linear low-density polyethylene): Toyo Thai + MESS (Japan)
6. Package F - Jetty (civil, marine structure & dredging): POSCO E&C (Korea)
7. Package G – Utility (CTU, steam, water plants): Hyundai E&C (Korea)
8. Power Plant: Hanwha (Korea) (deleted)
9. Basic construction: PVC (Vietnam)
10. Jetty and Offshore Survey Package: PVE (Vietnam)
11. Other contractors: Daelim, GS (Korea’s subcontractors), PTSC, Alpha ECC, Lilama (structure, tank, pressure vessel fabrications); Alpha NDT, PVNDT (NDT Contractors)
12. Certification Bodies: LR, VR, DNV GL, BV, ABS
13. Project Management Consultancy (PMC): Foster Wheeler
14. Feedstock Supplier: Qatar Petroleum (QP)
15. And other local subcontractors
FID: sanctioned in Dec 2017
Total CAPEX: USD 5,4 billion (will be lower as VCM Plant was removed)
Technical scope: some EPC Contractors already started FEED and conceptual designs. Since a negotiation for leasing LPG Storage with local PVGas was failed, the FDP will include the LPG Terminal at the gate of the complex. Tender for the SoW will be issued asap accordingly.
EPC Management Millstones: EPC Contractors are qualifying subcontractors and vendors to place POs in 2Q or 3Q 2018 onwards. Steel structures are expected to start in late 2018 or early 2019 and installation packages later in 2019 to 2021. All EPC Packages, shall be running in late 2018 to early 2022 before commissioning and hand over for commercial operation in mid-2022.
LSP, during construction phase will utilize around 15.000 to 20.000 both expat and local personnel. And bring a number of more than 1.000 qualified jobs for both expat and local Vietnamese after O&M in 2022, contributing approximately USD 112 million annually to the national budget for a project life cycle of 30 years operation.
Nguyen Le Minh
Viet Nam Prime Minister Nguyen Xuan Phuc also attended and made his speech.
Location: Long Son Island, Vung Tau, South Viet Nam; 100 km from HCMC and 30 km from Vung Tau by land transport or a short cut approx. 5 km from the Single Point, Marina Ferry Station in Dong Xuyen, Vung Tau.
LSP therefore, had started their contractual strategies and/or procurements early Jan 2018 and awarded major EPC Contracts to expat and local winners for the main scopes of work, include but not limited to the below:
1. Package A - Olefins Plant: Technip (Malaysia) + SK (Korea)
2. Package A2 - Tank Farm & Interconnecting pipelines: POSCO E&C (Korea) + PVC MS (Vietnam)
3. Package B - HDPE (High-density polyethylene) + Air Separation Unit (ASU): Samsung E&C (Korea) + Linde (Germany)
4. Package C - HDPE + ASU: Samsung E&C (Korea) + Linde (Germany)
5. Package D - LLDPE (Linear low-density polyethylene): Toyo Thai + MESS (Japan)
6. Package F - Jetty (civil, marine structure & dredging): POSCO E&C (Korea)
7. Package G – Utility (CTU, steam, water plants): Hyundai E&C (Korea)
8. Power Plant: Hanwha (Korea) (deleted)
9. Basic construction: PVC (Vietnam)
10. Jetty and Offshore Survey Package: PVE (Vietnam)
11. Other contractors: Daelim, GS (Korea’s subcontractors), PTSC, Alpha ECC, Lilama (structure, tank, pressure vessel fabrications); Alpha NDT, PVNDT (NDT Contractors)
12. Certification Bodies: LR, VR, DNV GL, BV, ABS
13. Project Management Consultancy (PMC): Foster Wheeler
14. Feedstock Supplier: Qatar Petroleum (QP)
15. And other local subcontractors
FID: sanctioned in Dec 2017
Total CAPEX: USD 5,4 billion (will be lower as VCM Plant was removed)
EPC Management Millstones: EPC Contractors are qualifying subcontractors and vendors to place POs in 2Q or 3Q 2018 onwards. Steel structures are expected to start in late 2018 or early 2019 and installation packages later in 2019 to 2021. All EPC Packages, shall be running in late 2018 to early 2022 before commissioning and hand over for commercial operation in mid-2022.
LSP, during construction phase will utilize around 15.000 to 20.000 both expat and local personnel. And bring a number of more than 1.000 qualified jobs for both expat and local Vietnamese after O&M in 2022, contributing approximately USD 112 million annually to the national budget for a project life cycle of 30 years operation.
Nguyen Le Minh
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