Vina SCG Chemicals Co Ltd or VSCG, wholly-owned subsidiary of SCG Group, has entered into the share purchase agreement with QPI Vietnam Ltd (QPIV), a subsidiary of Qatar Petroleum, to acquire all of QPIV’s 25 per cent equity stake in Long Son Petrochemicals Co Ltd (LSP), according to the company’s press release.
This equity transaction, valued at US$36.1 million or approximately Bt1.3 billion, will increase SCG’s direct and indirect stake in LSP to 71 per cent (from 46 per cent), while the Vietnamese parties hold 29 per cent.
LSP is positioned as Vietnam’s first petrochemicals complex. The project possesses competitive aspects ranging from integration, economies of scale, and competitive feedstock flexibility. Non-petrochemical supporting infrastructure such as adeep sea port and other facilities are also included at approximately 30% of the total investment cost.
At the heart of the project is a one million ton ethylene cracker with flexible gas and naphtha feed to yield in total olefins capacity of up to 1.6 million tons per year depending on the feedstock mix. The olefins cracker is equipped with high flexibility to utilize gas up to 80%, of total feedstock, for cost optimization and will be fully integrated to the downstream polyolefins (PE / PP) capacities of similar scale.
The project will be financed with a combination of equity and debt, whereby the final investment decision (FID) is expected by H1, 2017 and the CAPEX outlay will be finalized afterwards. With a five year construction period, the start-up is expected in 2021
LSP is positioned as Vietnam’s first petrochemicals complex. The project possesses competitive aspects ranging from integration, economies of scale, and competitive feedstock flexibility. Non-petrochemical supporting infrastructure such as adeep sea port and other facilities are also included at approximately 30% of the total investment cost.
At the heart of the project is a one million ton ethylene cracker with flexible gas and naphtha feed to yield in total olefins capacity of up to 1.6 million tons per year depending on the feedstock mix. The olefins cracker is equipped with high flexibility to utilize gas up to 80%, of total feedstock, for cost optimization and will be fully integrated to the downstream polyolefins (PE / PP) capacities of similar scale.
The project will be financed with a combination of equity and debt, whereby the final investment decision (FID) is expected by H1, 2017 and the CAPEX outlay will be finalized afterwards. With a five year construction period, the start-up is expected in 2021
nationmultimedia.com
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