Vietnam to put $5bn petrochemical complex in full commercial production next year
Thursday, November 02, 2023, 10:35 GMT+7
An integrated petroleum and chemical complex, costing over US$5 billion, on Long Son Island off Ba Ria-Vung Tau Province in southern Vietnam is scheduled for its first trial operation in November, with full commercial production expected to begin in 2024.
On Monday morning, Long Son Petrochemicals Company Limited (LSP), the owner of Long Son Petrochemical Complex, announced that the complex will be commissioned in November, in preparation for commercial operations next year.
Kulachet Dharachandra, general director of LSP, emphasized that safety and environmental protection are the primary concerns during both the testing and official operation phases.
With these considerations in mind, the Long Son Petrochemical Complex owner invested approximately $100 million in advanced and innovative technologies.
These include a ground flare and closed-loop technology, the first of its kind in Vietnam.
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| Plastic pellets produced during the testing phase of Long Son Petrochemical Complex in Ba Ria-Vung Tau Province, southern Vietnam. Photo: Dong Ha / Tuoi Tre |
This system does not emit smoke, light, heat, or noise. Another noteworthy feature is the sound insulation and noise reduction system, along with a two-layer odor reduction one.
According to LSP, the biological treatment system of Long Son Petrochemical Complex is equipped with a monitoring system and an early warning function that surpass the standards in Thailand by up to 30 percent.
Carrying a price tag of $5.1 billion, the compound is expected to produce about 1.4 million tons of plastic pellets annually, serving as a crucial raw material for various everyday plastic products, when fully operational.
LSP officials are optimistic that the complex can generate $1.4 billion in revenue in 2024.
In this scenario, the taxes payable to the local government would amount to approximately $150 million for that year.
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| Vietnamese engineers are at work at Long Son Petrochemical Complex in Ba Ria-Vung Tau Province, southern Vietnam. Photo: Dong Ha / Tuoi Tre |
The complex will employ nearly 1,000 Vietnamese workers.
"We will transfer the technology to the Vietnamese workers here," stated an LSP representative.
Two years ago, Thailand’s Siam Cement Group (SCG), which holds a stake in Long Son Petrochemical Complex, offered to take over the project for $5.4 billion.
SCG also proposed certain terms to facilitate the project, but Vietnam Oil and Gas Group did not provide details at that time.
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