The construction of the $4.5 billion Long Son petrochemical complex in the southern province of Ba Ria-Vung Tau, will be restarted in the fourth quarter of 2016 after eight-years of delay, according to newswire Doanhnhansaigon.vn.
According to Dhep Vongvanich, advisor to the president of SCG cum executive director of SCG in Vietnam, as of now, the consortium has finished the site clearance and is working on completing the remaining procedures to restart in the fourth quarter of this year.
Licensed in 2008, the complex was invested by a join-venture of Thai Siam Cement Group (SCG), Qatar Petroleum International (QPI), and Vietnam National Oil and Gas Group (Petrol Vietnam).
It was previously slated to begin construction in 2014 and be completed in 2017. However, the construction was delayed due to site clearance issues. As further obstacle, in December 2015 the Qatari investor has officially withdrawn from the project due to the restructuring of its development strategy. QPI and the two remaining investors failed to reach a compromise on capital transfer, leading to a serious delay in the project’s progress.
SCG also revealed that the project found a new investor replacing QPI, however, the name of the new investor has yet to be disclosed.
Once the complex comes into operation, it will be the biggest of its kind in Vietnam and is intended to meet the growing demand of local industries for high-quality plastic resins, valued at up to $2 billion annually.
The complex will consist of a factory capable of turning out 1.65 million tonnes of olefins, 1.45 million tonnes of poly-olefins, 280,000 tonnes of chloralkali, and other materials each year. The site will also include supporting facilities, such as a port, warehouses, and a power plant.