MOSCOW (MRC) -- Siam Cement Group (SCG), through its wholly-owned subsidiary Vina SCG Chemicals Co., has entered into a share purchase agreement with QPI Vietnam Ltd. (QPIV), a subsidiary of Qatar Petroleum (QP), to acquire QPIV's 25% interest in Long Son Petrochemicals Co. (LSP), reported Apic-online.
The transaction, valued at USD36.1-million, will increase SCG's direct and indirect stake in LSP to 71% from 46% currently. PetroVietnam holds the remaining 29% stake.
SCG last year said it expected to delay implementation of its planned LSP complex in Ba Ria-Vung Tau province, Vietnam, by six months, in order to finalize an agreement with a new partner, following Qatar Petroleum International's withdrawal of its 25% interest in the project.
LSP will include a 1-million-t/y ethylene cracker with flexible gas and naphtha feed, which will have the capacity to produce up to 1.6-million t/y of olefins, depending on the feedstock mix. It also includes the downstream production of 2.7-million t/y of polyethylene and polypropylene.
A final investment decision is expected in the first half of this year. Start-up anticipated in 2021.
As MRC wrote before, in April 2016, SCG said its planned petrochemical complex in Vietnam would be further postponed by six months, pending the conclusion of an agreement with a new joint-venture partner following the exit of Qatar Petroleum International (QPI). The USD4.5-billion fully integrated complex is to be the first of its kind in Vietnam and a key regional flagship for the Thai conglomerate.
SCG Chemicals is a subsidiary of SCG and is one of SCG’s 3 core businesses consisting of Chemicals, Paper and Cement-Building Materials. SCG embarked upon the chemicals business in 1989. At present, SCG Chemicals manufactures and supplies a full range of petrochemical products ranging from upstream petrochemicals such as Olefins, intermediate petrochemicals such as Styrene Monomer, PTA, and MMA, to downstream petrochemicals such as Polyethylene, Polypropylene, Polyvinyl Chloride, and Polystyrene resins. SCG Chemicals is now one of the largest integrated petrochemical companies in Thailand and a key industry leader in the Asia-Pacific region.
MRC