Long Son petrochemical complex settles last issues before implementation

April 01, 2017 | 08:52

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In the afternoon of March 29, 2017, PetroVietnam and other involved parties in Long Son Petrochemicals Company Limited (LSP) has signed important documents related to LSP, including a joint venture contract, a company charter, and a capital transfer contract between Qatar Petroleum International Vietnam (QPIV) and Siam Cement Group (SCG), as well as finalised the project’s capital at $5.4 billion.

petrotimes.vn

The successful negotiation and signing of documents on the company and transferring capital among partners is a milestone in the project’s implementation, ensuring its operations in 2021.

The project has a total estimated investment of $5.4 billion and will be installed with advanced technology, meeting environmental protection requirements and ensuring the production of high-quality products, such as PP and PE. The project will create about 15,000-20,000 jobs during its construction and over 1,000 jobs when put into commercial operation.

Before the acquisition, Qatar Petroleum International Vietnam (QPIV) held 25 per cent of LSP’s chartered capital. The remainder belonged to PetroVietnam with 29 per cent, and Thailand's SGC held 46 per cent.

Long Son petrochemical complex is one of the largest of its kind in Vietnam, with a production capacity of 1.6 million tonnes of olefins per year.

In this occasion, PetroVietnam Gas, member of PetroVietnam , also issued a letter of commitment to secure ethane gas sources for the complex.

The project will contribute to the budgets of the southern province of Ba Ria-Vung Tau and Vietnam an estimated $115 million per year throughout its 30 years of operation.

Up until now, LSP’s deposit transferred to the Ba Ria-Vung Tau Provincial People’s Committee is approximately $41.95 million and the province has finished the site clearance, relocating all 390 households from the main area of 464 hectares of the project.

In December 2016, the Ba Ria-Vung Tau Provincial People’s Committee approved in Decision No.3597/QD-UBND the unit price for land lease as a ground to sign the land lease and land use right contracts. Accordingly, the highest unit price for lump-sum rental calculation is roughly $80 per square metre, and the lowest is around $21 per sq.m. This figure for land with water surface is $21 per sq.m.

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