Qatar Petroleum acquires stake in Vietnam petrochemical plant

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Qatar's Emir Sheikh Hamad bin Khalifa al-Thani (2nd L) chats with Vietnam's President Truong Tan Sang (2nd R) as Qatar's Energy and Industry Minister and Chairman and Managing Director of Qatar Petroleum Mohammed Bin Saleh Al-Sada (L) and Petrovietnam's President and Chief Executive Officer Do Van Hau sign an cooperation agreement at the Presidential Palace in Hanoi January 16, 2012. ?Photo -

Qatar Petroleum International (QPI) plans a joint venture in building the $4-billion Long Son petrochemical project in Vietnam. ?The Emir of Qatar, Sheikh Hamad bin Khalifa Al-Thani made the announcement during a visit to Vietnam.?The project has been postponed in the past due to financial constraints.

Accordingly, QPI will contribute 25% of the total cost, to the tune of around $1 billion. Other participants in the venture are Vietnam’s Vinachem, SCG chemicals and Thai Plastics and Chemicals Co Pcl.

The agreement for engineering, procurement and construction is expected to be finalised by the end of February. The complex will be built over a period from 2011 to 2015.

The proposed complex will be Vietnam’s first fully integrated petrochemical project, consisting of upstream, intermediate and downstream plants, QPI said?in a separate statement. The Long Son project aims for a production capacity of 3 million mt/year in 2014.

The complex will house a 1.4 million mt/year olefins cracker, which will switch between gases such as ethane and LPG to naphtha for feedstock. QPI will supply feedstock for the complex that will be located on Long Son Island in southern Vietnam in the province of Ba Ria-Vung Tau.

The cracker will be integrated with downstream units, which include a 400,000 mt/year HDPE plant, 450,000 mt/year polypropylene plant and 400,000 mt/year LLDPE plant. There will also be PVC-related production capacity covering Chlor-Alkali, ethylene dichloride, and vinyl chloride monomer.

The project will be managed by Long Son Petrochemical Ltd company, in which PetroVietnam holds 18% stake, Vinachem (11%), Thailand’s SCG (53%) and Thai Plastics and Chemicals (18%).

Sources: Platts, Gulfbase

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