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SCG inks $3.2 bn loan agreement for petrochemical complex

Released at: 16:52, 07/08/2018

SCG inks $3.2 bn loan agreement for petrochemical complex

Photo: SCG

Thai group seeks loan contracts to move Vietnam's first integrated petrochemical complex forward.

by Hong Nhung

On August 6, SCG announced that it has pushed forward Long Son Petrochemicals Company Limited (LSP), Vietnam’s first fully integrated petrochemical complex project, by recently signing loan agreements worth over $3.2 billion with six leading financial institutions.

The project will begin construction in Q3/2018 and is expected to start commercial operations in the first half of 2023 to meet Vietnam’s soaring demand which can be as high as 2.3 million tons per year. This demand is projected to expand continuously thanks to Vietnam’s strong economic growth.

“Long Son Petrochemicals project or LSP is a world-scale petrochemical complex with an investment of approximately $5.4 billion,” said Mr. Roongrote Rangsiyopash, President and CEO of SCG. 

“It's currently SCG’s flagship investment. This venture will increase the competitive advantages of SCG’s Chemicals Business in Southeast Asia. The project is equipped with world-class advanced technology that's flexible enough to utilize raw materials resulting in an increased competitive advantage. The project also leverages digital technology to create innovations for better products, services, and solutions for its customers.”

The loan agreements were made in U.S. dollars and were signed with six leading financial institutions: Sumitomo Mitsui Banking Corporation, Mizuho Bank, Bangkok Bank, Krungthai Bank, Siam Commercial Bank, and Export-Import Bank of Thailand. The total credit facilities are worth over $3.2 billion with a tenor of approximately 14 years. Sumitomo Mitsui Banking Corporation is the project's financial advisor.

LSP is located in Ba Ria – Vung Tau province which is 100 km from Ho Chi Minh City. Its olefins production capacity is 1.6 million tons per year for manufacturing High-Density Polyethylene (HDPE), Linear Low-Density Polyethylene (LLDPE), and Polypropylene (PP). 

The project has been maintained and operated with strict procedures to achieve world-class safety standards and environmentally-friendly practices to sustain activities and support a peaceful coexistence with Vietnam’s communities and society.

Early this year, Thailand’s largest cement maker held a breaking ground ceremony for its flagship project, Long Son Petrochemicals, in southern Ba Ria - Vung Tau province. It's expected that the project will advance the local industry and provide better living conditions for people by creating competitiveness in the petrochemicals value chain.

 

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