LSP has accessed into an EPC contract for the ethane storage tanks, with construction predicted to be finished by the end of 2027
SGCG Chemicals (SCGC) declared the latest progress at the ethane feedstock improvement venture at the Long Son Petrochemicals Complex (LSP) in Vietnam (LSPE venture). The venture has reached another key milestone with preparation undergoes for the construction of ethane storage tanks.
LSP has accessed into an Engineering, Procurement, and Construction (EPC) deals for the ethane storage tanks, with construction anticipated to be finished via the end of 2027.
LSP is the primary petrochemical complex in ASEAN to use of imported ethane from the USA as feedstock, in order to notably decrease feedstock price by using more than 30% in comparison to the current naphtha charge.
Sakchai Patiparnpreechavud, Chief Executive Officer & President of SCGC, stated: “As SCGC earlier declared the venture to improve feedstock adaptability with ethane feedstock, its deliver chain to LSP consists of- an ethane deliver agreement with export terminal, Very Large Ethane Carriers (VLECs), and especially designed storage tanks for ethane, which has exceptional properties in comparison to simple LNG and propane. The enterprise has previously protected a 15-year long-time period ethane delivery agreement from the America and successfully protects the primary lot of three VLECs last January.”
“Regarding the latest development, the enterprise has pushed efforts to engage the world over identified contractors with broad experience in large-scale venture to construct the specialized ethane storage tanks. The tank construction is another crucial element on this venture. A association of China Tianchen Engineering Corporation and PetroVietnam Technical Service Corporation, a member of Vietnam Oil & Gas Group (PetroVietnam or PVN), has been chose as a contractor for the 2 tanks, with a potential of about 55,000 tons per tank. These tanks will contains 1 million tons of ethane per year. We are confident that the LSPE venture may be finished as expected by the end of 2027.”
The ethane storage tanks to be settled on the LSP plant are designed with complete isolation proposing a double-walled structure, with the outer wall and roof made from actual and the inner wall constructed from special-grade metal. Each tank, with a potential of about 55,000 tons, is intended to securely store ethane at a temperature as low as -90 ranges Celsius. In addition, LSP is likewise preparing to improve its manufacturing procedure and improve assisting facilities to contain the feedstock.
“Regarding the 15-year contract for 5 VLECs to hold ethane from the US to Vietnam, the contract for the first lot of 3 vessels has earlier been signed with Mitsui O.S.K. Lines (MOL), at the same time as the contract for the last two vessels are now in procedure and are anticipated to be completed soon,” stated Sakchai.
“The LSPE venture’s anticipated funding is approximately 500 million USD, or approximately 18,000 million Baht, invested through SCG’s internal sources. In the past, importing ethane from America to be utilize within the petrochemical industry faced numerous boundaries, along with limitations within the ethane storage and export capability from the US, the lengthy lead time and specialized construction of VLECs, and protecting ethane supply via long-time period agreement. Moreover, after assessing the venture’s possibility, SCGC right away implements it on the way to improve competitiveness and notably lower charges for the LSP plant, making ready for the restoration of the regional petrochemical marketplace,” concluded Patiparnpreechavud.
