Secures long term supply and transport agreements to capture market recovery opportunities
SCG Chemicals (SCGC), keeps to power the recovery of the petrochemical business, rising efforts to enhance competitiveness with the aid of growing the usage of ethane feedstock at the Long Son Petrochemicals (LSP) plant in Vietnam.
This strategic move is expected to result in reduce feedstock cost, expanded flexibility in feedstock ownership, and a discount in greenhouse gas emissions, aligning with environmentally friendly practices.
Sakchai Patiparnpreechavud, Chief Executive Officer & President of SCGC, stated, “SCGC is urgently advancing the Ethane Feedstock Enhancement Project on the LSP plant in Vietnam (LSPE) as a part of its proactive method to strengthen competitiveness and reduce manufacturing cost. We are confident in our preparation to capitalize at the recovery of the petrochemical market in the future. The latest development consists of correctly securing ethane feedstock from America.
“We have signed a long time period agreement with an associate of Enterprise Products Partners, a main ethane supplier in the United States, to earn 1 million tons of ethane in per year for 15 years.
“Furthermore, we have got signed an extended-term time agreement for 3 Very Large Ethane Carriers (VLECs) with Mitsui O.S.K. Lines (MOL), a international primary liquefied gas shipowner. MOL will giving 15 years of logistics services, transporting ethane from the US to Vietnam. The final two charter agreements for ethane carriers are presently in progress.
“This effort guarantees that the LSP plant will continue to be competitive in the long term with notably decrease manufacturing costs. Designed with flexibility for gas feedstock, the LSP plant has been improved to use up to two-thirds of its feedstock from ethane, while the lasting feedstock will consist of propane and naphtha.
“Moreover, we also are expediting the construction of ethane storage tanks, which might be in particular designed to securely keep ethane feedstock at extraordinarily low temperatures of about -90 ranges Celsius. Preparations for advancing manufacture process and assist facilities need for feedstock reception also are being expanded. The venture is anticipated to be completed by way of the end of 2027, aligning with the expected recovery of the petrochemical industry in the place.”
The LSP plant produces and supplies high quality polymers for Vietnam’s domestic market and exports to global markets.
