The proposal to adjust technology and capacity of Southern Petrochemical Complex

The proposal to adjust technology and capacity of Southern Petrochemical Complex - 

Long Son Petrochemical Company Limited (LSP) has just made a proposal to the Prime Minister on increasing the total investment capital of the Southern Petrochemical Complex project to 5.15 billion USD, including an equity of nearly US$ 2.1 billion, accounting for 40 % total investment. 

According to LSP, the capital increase relates increasing the competitiveness, economic efficiency through adjusting technology and capacity of the project. Besides, the investor also asked to delay the deadline for project commercial operation time of the project to December 2022, for 3 years in comparison with original plan.

The Ministry of Planning and Investment (MPI) which has appraised this report strongly supported the proposal of LSP and asked Prime Minister to approve adjusting proposal with a consideration that the total investment capital of US$ 5.15 billion is lower than US$ 5.4 billion approved by the Ministry of Industry and Trade in 2018. However, MPI also noted Ba Ria - Vung Tau Provincial People’s Committee to closely supervise and inspect the project implementation, contract for capital loan, actual loan and implementation costs.

Previously, at the end of October 2019, during the meeting with Deputy Prime Minister Trinh Dinh Dung in Hanoi, Mr. Roongrote Rangsiyopash - Chairman and CEO of Thailand SCG Group the Investor of the Complex already proposed adjusting the total investment capital of this project.

Deputy Prime Minister Trinh Dinh Dung and Chairman and CEO of SCG Group Roongrote Rangsiyopash - Photo: VGP/Nhật Bắc

Reporting the progress of the project to the Vietnamese Government, SCG leader informed that the project implementation volume has been today reached about 24%, for 2% behind the general progress, but SCG committed to take measures to regain the progress for putting the project into operation by the end of 2022.

The Southern Petrochemical Complex is the first independent petrochemical complex with the large capacity, advanced and modern technology that meet requirements for safety operation, environmental protection and producing petrochemical products with a high quality as PP, PE plastics…

The project is developed on a total area of ​​464 ha in Long Son Petroleum Industrial Park (Vung Tau City), and will create about15,000 - 20,000 jobs during construction, and 1000 jobs and US$ 115 million per year for Ba Ria – Vung Tau and national budgets during 30 year of project operation.

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