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QATAR,THAILAND,VIET NAM : $4.5 billion petrochemical plant to be built in Vietnam!

In Bangkok, an agreement has been inked between Siam Cement Group, Qatar Petroleum International, PetroVietnam, and the Vietnam National Chemical Group for making investment in Vietnam's first petrochemicals project in Ba Ria-Vung Tau Province.

With the investment of $4.5 billion, the project will be Vietnam's first integrated petrochemicals complex, serving as a springboard for import substitution and value-added conversion industries for the country, and a vehicle to capture the ASEAN growth for the country, said Kan Trakulhoon, president and CEO of SCG.

"In addition to full integration and economies of scale, security and availability of long-term feedstock is essential for the competitiveness of this project, said Trakulhoon, Qatar International Petroleum Marketing Comp. Ltd. the exclusive marketer of regulated products from Qatar, signed a long-term agreement to supply propane and naphtha for the cracker plant, while PV GAS, a subsidiary of PetroVietnam, signed a memorandum of understanding to supply ethane.

In this project, SCG will hold 28% stake, whereas Thai Plastic and Chemicals, an SCG affiliate holds another 18% and the remaining stake will be owned by QPI Vietnam (a subsidiary of Qatar Petroleum International), Petro Vietnam, and Vinachem.

It is estimated that in the next four years the plant will start its commercial operation and will produce 1.4 million tonnes of olefins besides downstream products such as polyethylene, polypropylene, and vinyl chloride monomer. The greater part of the output will be consumed domestically, though other ASEAN member countries are also on the JV's radar.

The plant will be based in Long Son Island - adjacent to a planned oil refinery for operational synergy - the petrochemical complex will be close to the southern Vietnamese market.

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Publication:Mena Report
Geographic Code:9VIET
Date:Feb 18, 2012
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