$5 billion petrochemical complex in Ba Ria - Vung Tau province begins commercial operation

Long Son Petrochemicals company (LSP), a subsidiary of the Siam Cement Group (SCG) from Thailand, on September 30 announced that it has officially put the Long Son Petrochemical Complex (LSP) into commercial operation after more than six years of construction.

As Vietnam's first integrated petrochemical complex, LSP is one of the key projects initiated in 2018, with a total investment of over $5 billion from SCG and its subsidiaries. Located in Long Son commune, Vung Tau City, southern Ba Ria - Vung Tau province, it represents a major milestone for Vietnam's petrochemical industry.

As the first integrated petrochemical complex in Vietnam, LSP produces a wide range of petrochemical products, including essential plastic raw materials such as polyethylene (PE) and polypropylene (PP).

The complex features a large-scale mixed feed cracker (olefins plant), world-class polyolefin production plants, a dedicated port and tank farm, a central utility plant, and other related facilities. All facilities are equipped with advanced technology to ensure safety and environmental friendliness.

According to its investors, the resin products from LSP will help reduce the import of polyolefins and enhance the competitiveness of downstream businesses in the supply chain. Additionally, these products serve as essential raw materials for various industries such as packaging, agriculture, electrical equipment, automotive parts, and many other sectors.

Mr. Kulachet Dharachandra, General Director of Long Son Petrochemical company, stated that to enhance competitiveness, LSP plans to increase production flexibility by diversifying raw material sources.

In the long term, LSP intends to increase the proportion of imported ethane gas as a raw material in addition to naphtha and propane. The increased use of ethane also contributes to reducing carbon dioxide emissions.

"We are proud to announce that the complex has officially commenced commercial operations and believe it will bring long-term economic growth and improve the competitive advantages of Vietnam's petrochemical and plastics industries," Mr. Kulachet Dharachandra stated

"Currently, while the global petrochemical industry is experiencing a downturn and crude oil price fluctuations are driving up raw material costs, LSP will focus on optimizing its operational model and improving operational efficiency to adapt to the competitive global environment," he said.