Bangkok – 24 January 2025 – SCG Chemicals, or SCGC, continues to drive the recovery of the petrochemical business, accelerating efforts to enhance competitiveness by increasing the use of ethane feedstock at the Long Son Petrochemicals (LSP) plant in Vietnam. This strategic shift is expected to result in lower feedstock costs, increased flexibility in feedstock procurement, and a reduction in greenhouse gas emissions, aligning with environmentally friendly practices.
Sakchai Patiparnpreechavud, Chief Executive Officer & President of SCGC, said, “SCGC is urgently advancing the Ethane Feedstock Enhancement Project at the LSP plant in Vietnam (LSPE) as part of its proactive strategy to strengthen competitiveness and reduce production costs. We are confident in our readiness to capitalize on the recovery of the petrochemical market in the future. The latest progress includes successfully securing ethane feedstock from the United States. We have signed a long-term agreement with an affiliate of Enterprise Products Partners L.P., a leading ethane supplier in the United States, to procure approximately 1 million tons of ethane per year for 15 years. Additionally, we have signed a long-term time charter agreement for three Very Large Ethane Carriers (VLECs) with Mitsui O.S.K. Lines (MOL), a global leading liquefied gas shipowner. MOL will provide 15 years of logistics services, transporting ethane from the United States to Vietnam. The remaining two charter agreements for ethane carriers are currently in progress. This effort ensures that the LSP plant will remain highly competitive in the long term with significantly lower production costs. Designed with flexibility for gas feedstock, the LSP plant has been optimized to utilize up to two-thirds of its feedstock from ethane, while the remaining feedstock will consist of propane and naphtha.”
“Furthermore, we are also expediting the construction of ethane storage tanks, which are specially designed to safely store ethane feedstock at extremely low temperatures of approximately -90 degrees Celsius. Preparations for upgrading production processes and supporting facilities required for feedstock reception are also being accelerated. The project is expected to be completed by the end of 2027, aligning with the anticipated recovery of the petrochemical industry in the region,” added the Chief Executive Officer and President of SCGC.
The LSP plant produces and supplies high-quality polymers for Vietnam’s domestic market and exports to international markets. Products from the LSP plant are renowned for their quality and compliance with global standards. The LSPE project will further enhance the capabilities of the LSP plant, solidifying its position as a key petrochemical production base in the region.
About SCGC
SCG Chemicals or SCGC is a leading integrated chemical player in ASEAN with strategic bases in Vietnam, Indonesia, and Thailand, offering a full range of petrochemical products ranging from upstream production of olefins to downstream production of 3 main plastics resins: polyethylene, polypropylene, and polyvinyl chloride. SCGC focuses on inventing “Innovation That’s Real” to drive the ASEAN economy and elevate the quality of life in accordance with ESG and circular economy. SCGC develops technology and innovation toward HVAs in infrastructure, consumable packaging, automotive, health and well-being, and energy solutions, while ensuring sustainable environmental stewardship. For more information, visit www.scgchemicals.com.
About LSP
Long Son Petrochemicals Company Limited (LSP), a subsidiary of SCGC, is the first integrated petrochemicals complex in Vietnam. Operating under ESG principles for sustainable development, LSP meets world-class production standards with facilities including polyolefin production, chemical storage, and centralized utilities. The project aims to drive the growth of Vietnam’s petrochemical industry by reducing imports, promoting the downstream industry, and contributing to long-term economic growth while improving the quality of life for the population. For more information, visit www.lsp.com.
About Enterprise Products Partners
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals, exporting over 2 million barrels per day of liquid hydrocarbon products during 2024 (as of September 30). Additional details of Enterprise can be found on www.enterpriseproducts.com
About Mitsui O.S.K. Lines
Mitsui O.S.K. Lines, Ltd. is a leading shipping company, operating on a global scale with about 900 vessels in service. The company develops various social infrastructure businesses centered on ocean shipping, as well as technologies and services to meet ever-changing social needs including environmental protection. The MOL fleet includes dry cargo ships, liquefied natural gas (LNG) carriers, car carriers, and tankers. In addition to the traditional shipping businesses, MOL also offers wellbeing & lifestyle businesses such as real property, terminal operation, and ferry service, as well as social infrastructure businesses such as logistics and offshore wind power. Additional details of MOL can be found on https://www.mol.co.jp/en/
Published on: Jan 24, 2025
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