SCG to pour $700 million into ethane feedstock enhancement project

November 04, 2024 | 17:31

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The Siam Cement Public Co., Ltd. (SCG) announced on October 30 that Long Son Petrochemicals Co., Ltd. (LSP) is moving ahead with an ethane enhancement project, with a budget of $700 million.

SCG to pour $700 million into ethane feedstock enhancement project

Photo: SCG

LSP is a wholly owned subsidiary in Vietnam of SCG Chemicals Public Co., Ltd., which is a wholly owned subsidiary of SCC.

LSP is currently working with authorities to acquire necessary certificates and permits. Funding of this project will preliminarily come from SCC’s internal sources. The project is expected to be completed by the end of 2027.

By utilising imported ethane from the United States as a raw material, LSP can significantly enhance its competitiveness through lower feedstock cost and flexibility, while also lowering carbon emissions.

LSP’s olefins process is designed for gas feedstock flexibility. As such, the majority of the investment for the project will go towards handling and storage of the ethane feedstock, which requires temperature as low as -90 degree Celsius. Once completed, LSP will be able to utilise ethane as much as two thirds of the total feedstock, in addition to propane and naphtha.

LSP had its commercial operation date on September 30, following at $5.2 billion investment and a comprehensive testing period. In light of the existing petrochemical trough with historical low margin, and the current volatile global economic environment, LSP is closely monitoring the market situation and will adjust the run rate of its operation during this challenging period for petrochemical business.

The size of this investment is approximately 2.4 per cent of the total assets of SCC in consolidated financial statements as of June 30, brining the combined total of acquisitions over the past six months to 4.25 per cent.

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By Thanh Van

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