Petrochemical complex worth over 5 billion USD resumes operation after nearly 1 year of suspension

After nearly a year of suspension, the Long Son petrochemical project - the first integrated petrochemical complex in Vietnam - has officially resumed operations.

On August 20, Long Son Petrochemicals Company Limited (LSP, a member of SCG Group - Thailand) announced that it had restarted the entire petrochemical complex after a period of temporary suspension to control costs. The decision was made in the context of falling crude oil prices, helping to improve operating profit margins.

The company is also implementing the $500 million LSP Refinery Improvement Project (LSPE), which is expected to be completed in 2027. The project aims to integrate more ethane into its feedstock mix (currently naphtha and propane), reducing operating costs by more than 30%, cutting greenhouse gas emissions and enhancing long-term competitiveness.

LSP restarts operations of the entire integrated petrochemical complex after nearly a year of suspension. Photo: LSP

Mr. Kulachet Dharachandra, General Director of LSP, said that the decline in crude oil prices has opened up opportunities for the complex to re-operate while maintaining links with customers and the supply chain.

He emphasized that diversifying raw material sources with ethane gas is a key strategy, both strengthening competitiveness and contributing to strengthening economic and trade relations between Vietnam and the United States. The LSPE project is expected to create more than 1,000 jobs during the construction phase and promote local economic development.

Long Son Petrochemical Complex started construction in 2018, invested by SCG Group and its member companies, with a total capital of more than 5 billion USD. The factory is located in Long Son commune, Ho Chi Minh City (formerly Vung Tau city, Ba Ria - Vung Tau province).

The project includes an olefin upstream plant, three polyolefin downstream plants (HDPE, LLDPE, PP) and a port infrastructure system. The designed capacity reaches 1.4 million tons of olefin resins/year, providing essential raw materials for many industries such as packaging, agriculture , electronics and automobiles.

In 2024, after one month of commercial operations, LSP suspended operations from mid-October to control costs and await more favorable market conditions.

Source: https://vietnamnet.vn/to-hop-hoa-dau-hon-5-ty-usd-van-hanh-lai-sau-gan-1-nam-tam-dung-2434115.html