Construction of $5.4 billion Long Son petrochemical complex resumes

Petrochemical complex starts rolling By Van Nam - The Saigon Times Daily HCMC – Vietnam Oil and Gas Group (PVN) and Vietnam National Chemical Group (Vinachem) signed a joint venture agreement with partners from Thailand and Qatar to deploy the US$4.5 billion Long Son petrochemical project in Ba Ria-Vung Tau Province. According to the contract and credit agreements signed with Thailand’s Siam Cement Group (SCG) and Qatar Petroleum International (QPI) last Friday in the Thai capital Bangkok, all sides have pledged to put the complex into operation within the next four years. SCG will hold a 28% stake, with the rest held by three other partners. Kan Trakulhoon, president of SCG, said the complex will be able to produce 1.4 million tons of olefins from ethane, propane and naphtha. The complex, to be located in Long Son Oil and Gas Industrial Park, will consist of a number of facilities such as a port, pier, warehouse and power plant. In addition, with the advanced crushing technology, it can create other products, including polyethylene (PE), polypropylene (PP) and vinyl chloride monomer (VCM) for domestic demand. Qatar International Petroleum Marketing Company Ltd. also signed a contract to supply propane and naphtha for the crushing plant, while ethane will be supplied by PetroVietnam Gas Corporation under PVN.... [read more]

SCG acquires more stakes in local companies By Quoc Hung - The Saigon Times Daily HCMC – After acquiring a 99% stake in the Dong Nai-based Buu Long Investment and Industry Joint Stock Company, Thailand’s Siam Cement Group (SCG) recently announced it has taken over big stakes in two local plastic firms. Particularly, Thai Plastic and Chemicals Co. Ltd., a subsidiary of SCG, has acquired 9.82 million shares, or a 22.67% stake, in Tien Phong Plastics Joint Stock Company (NTP) and 5.85 million shares, a 16.73% stake, in Binh Minh Plastics Joint Stock Company (BMP), said SCG in a press release. BMP and NTP are leading PVC pipe producers in HCMC and the northern region respectively. A representative of the HCMC Plastic Association told the Daily that local plastic enterprises are facing many difficulties in business as well as investment expansion. It is because plastic products are now levied special consumption tax, while consumption slows down and business expansion is hindered by restricted access to bank loans. Therefore, several industry players are planning to switch to other business fields, or sell stakes to expand investment. This offers a good chance for foreign companies to acquire stakes in local plastic companies. SCG did not reveal the value of its acquisition deals with BMP and NTP, but the Thai group informed the total assets of SCG in Vietnam has increased 28% to US$370 million, versus US$330 million as publicized in March when it announced the acquisition of Buu Long Co. Last year,…... [read more]

Vinachem withdraws from oil refinery project Lan Nhi By Lan Nhi - The Saigon Times Daily HANOI – Vietnam National Chemical Group, or Vinachem, has planned to withdraw from the Long Son oil refinery complex project for months and it expects to complete the stake transfer next month. Over five months ago, Tran Thi Binh, deputy general director of Vietnam Oil and Gas Group (PVN), informed local media of the withdrawal plan of Vinachem. According to Binh, a Thai partner in the venture agreed to receive the 11% stake transferred from Vinachem after the group applied for the withdrawal. There are two Thai partners involved in the project, namely Thailand’s SCG Group and Thailand’s Plastic and Chemicals (TPC), and it is unknown which Thai firm is pursuing the takeover. PVN which now holds a stake of 18% in the project also considered purchasing Vinachem stake at that time but it has yet to reach a final conclusion. Vinachem and its Thai partner now are striving to complete the deal to transfer the stake in the joint venture, expected to be done next month. However, both Vinachem and PVN declined to name the foreign partner. The complex project has total investment of US$4.5 billion contributed by five partners including SCG with 28% and TPC with 18%. The remaining shares belong to strategic partners of the scheme, including QPI Vietnam under the umbrella of Qatar Petroleum International, PVN and Vinachem. Vinachem now is concentrating its investment capital on its core-business projects. They…... [read more]

By Thiên Lý Late June Thailand's largest corporation, PTT Public Company Limited (PTT), postponed plans to build the US$20 billion Victory Nhơn Hội refinery and petrochemical complex in the south-central coastal province of Bình Định. The complex would have covered 1,400 hectares in the Nhơn Hội Economic Zone and refined around 20 million tonnes of oil a year. PTT had tied up with the world's biggest oil producer Saudi Arabian Oil Company (Saudi Aramco) to build and operate the plant. The main reasons the Thai investor gave for the withdrawal were uncertainty in the global oil market where crude prices have plummeted, and their unhappiness with the incentives offered by the local government. On their part, the Bình Định authorities said they have also decided to shelve the project since the investors had failed to prove its feasibility but had taken so much time that the province had missed the opportunity to attract other investors to the economic zone. But details of the disagreement between the two sides are not known. Before the Nhơn Hội refinery project, in mid-June Russsia's Gazprom Neft (GPN) had decided to pull out of negotiations to buy a stake in the operator of Việt Nam's only oil refinery, Dung Quất. GNP, the oil arm of top global gas producer Gazprom, had started exclusive negotiations to buy a 49 per cent stake in the Bình Sơn Refining and Petrochemical Company (BSR), the operator of Dung Quất and a subsidiary of State oil company PetroVietnam. GNP decided…... [read more]

A view of the Nhon Hoi Economic Zone in Central Binh Dinh province. Late June, Thailand's largest corporation, PTT Public Company Limited (PTT), postponed plans to build the US$20 billion Victory Nhon Hoi refinery and petrochemical complex in the province. — Photo baodautu.vn by Thien Ly Late June, Thailand's largest corporation, PTT Public Company Limited (PTT), postponed plans to build the US$20 billion Victory Nhon Hoi refinery and petrochemical complex in the south-central coastal province of Binh Dinh. The complex would have covered 1,400 hectares in the Nhon Hoi Economic Zone and refined around 20 million tonnes of oil a year. PTT had tied up with the world's biggest oil producer Saudi Arabian Oil Company (Saudi Aramco) to build and operate the plant. The main reasons the Thai investor gave for the withdrawal were uncertainty in the global oil market where crude prices have plummeted, and their unhappiness with the incentives offered by the local government. On their part, the Binh Dinh authorities said they decided to shelve the project since the investors had failed to prove its feasibility but had taken so much time that the province had missed the opportunity to attract other investors to the economic zone. But details of the disagreement between the two sides are not known. Before the Nhon Hoi refinery project, Russsia's Gazprom Neft (GPN) in mid-June decided to pull out of negotiations to buy a stake in the operator of Viet Nam's only oil refinery, Dung Quat. GPN, the oil arm of…... [read more]

VietNamNet Bridge - After more than four years since it was announced, the $22 billion Nhon Hoi petrochemical project officially proposed to withdraw from Vietnam’s oil and gas development plan to 2025. To date at least three foreign oil and gas groups have fled from Vietnam. The authorities of the central province of Binh Dinh have officially announced that the Victory Nhon Hoi Oil Refinery and Petrochemical Complex was cancelled after a long delay. “The province and the Thai partner, the Petroleum Authority of Thailand Company (PTT), agreed to end the project because of the latter’s inability to implement. PTT was unable to proceed because of the project’s unfeasibility given the low global crude oil price compared to when the investment decision was made,” said Mr. Nguyen Ngoc Toan, Deputy Manager of the Nhon Hoi Economic Zone on the VN Economic Times. When PTT decided on the investment in 2012 it was the first petrochemical refinery complex in Vietnam, with a total capacity of 20 million tons per year and was to contribute about 40 percent to Binh Dinh’s GDP once operational. It was also expected to provide about 30,000 jobs. Given the difficult economic situation, PTT and the other partner, Saudi Aramco from Saudi Arabia, asked for a reevaluation of the project in February, with investment to be cut from the initial $28 billion to $22 billion and capacity to 400,000 barrels a day. Binh Dinh province threatened to revoke the investment license in June due to delays in…... [read more]

Construction is expected to start in the latter half of 2017 for the long-delayed US$4.5 billion project Long Son Petrochemical Complex in Ba Ria - Vung Tau Province. Roongrote Rangiyopah, president of the Thai SCG group, told a press briefing in HCM City yesterday that the shareholder structure of the project would be finalised by the end of this year. Financial solutions for project implementation are expected to be worked out in the first half of 2017. Licensed in 2008, the project, with SCG, Qatar Petroleum International and PetroVietnam as investors, has faced difficulties including the withdrawal of the Qatari partner. SCG is developing several new projects, including a ceramic tile production in the north and an expansion of the existing craft paper plant in the south. This will boost group assets in Vietnam to more than US$1 billion from the current US$860 million. "Our future for Vietnam is to develop plans according to our direction, which is focused on sustainable development in all areas, including business operation, products and services and social responsibility projects," he said. Rangiyopah took part in the 10thanniversary of the Sharing the Dream Scholarship Program in partnership withTuoi Trenewspaper to support poor students with good performance. About 360 students received scholarships each worth VNĐ4 million (US$180), increasing the number of beneficiaries to 4,000. VNS... [read more]

HCM CITY (Biz Hub) - Construction is expected to start in the latter half of 2017 for the long-delayed US$4.5 billion project Long Sơn Petrochemical Complex in Bà Rịa - Vũng Tàu Province. Roongrote Rangiyopah, president of the Thai SCG group, told a press briefing in HCM City yesterday that the shareholder structure of the project would be finalised by the end of this year. Financial solutions for project implementation are expected to be worked out in the first half of 2017. Licensed in 2008, the project, with SCG, Qatar Petroleum International and PetroVietnam as investors, has faced difficulties including the withdrawal of the Qatari partner. SCG is developing several new projects, including a ceramic tile production in the north and an expansion of the existing craft paper plant in the south. This will boost group assets in Việt Nam to more than US$1 billion from the current US$860 million. "Our future for Việt Nam is to develop plans according to our direction, which is focused on sustainable development in all areas, including business operation, products and services and social responsibility projects," he said. Rangiyopah took part in the 10thanniversary of the Sharing the Dream Scholarship Program in partnership withTuổi Trẻnewspaper to support poor students with good performance. About 360 students received scholarships each worth VNĐ4 million (US$180), increasing the number of beneficiaries to 4,000. - VNS... [read more]

Thailand’s State-owned oil and gas giant PTT has only asked authorities to delay its Victory Nhon Hoi Oil Refinery and Petrochemical Complex project in south-central Binh Dinh province, not withdraw from the project, a local official has confirmed. In response to VET enquiries on July 9, Mr. Nguyen Ngoc Toan, Deputy Head of the Nhon Hoi Economic Zone, the site of the project, said that “the Thai group has not yet withdrawn from the project as some foreign and local media have reported.” “PTT has only asked for the project’s implementation to be delayed,” Mr. Toan told VET. “The province will make a decision with PTT before the end of the month.” Foreign and local media reported last week that PTT had withdrawn from the $20 billion oil refinery and petrochemical complex project due to difficulties caused by falling oil price. Mr. Toan, however, said that given the uncertainty in global crude oil markets triggered by a falling crude oil price, “the investor said it would need time to reconsider the project’s size.” The Victory Nhon Hoi project was initially estimated in 2012 to require investment of $28 billion and have a total annual capacity of 20 million tons when PTT began studying the investment. The project is expected to contribute 40 per cent of the Binh Dinh’s GDP. It was to break ground in 2016 and PTT has been cooperating with the world’s largest oil company, Saudi Aramco, with each contributing a 40 per cent stake, while the remaining…... [read more]

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…... [read more]




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