Qatar Petroleum (QP) will invest in Vietnams US$4.5 billion petrochemicals complex in a joint venture (JV) with Thai-based Siam Cement Group and its Vietnamese partners, PetroVietnam (PVN) and Vinachem.
With this JV agreement, Siam Cement holds 28 per cent stake in the project, while Thai Plastic and Chemicals (TPC) holds another 18 per cent.
First petrochemicals complex
Kan Trakulhoon, president and CEO of Siam Cement Group said, "With US$4.5 billion investment, the project will be Vietnam's first integrated petrochemicals complex, serving as the spring board for import substitute and value-added conversion industries for the country, and a vehicle to capture Asean growth for Vietnam."
Qatar International Petroleum Marketing Company (Tasweeq), the exclusive marketer of regulated products from Qatar, has signed a long term feedstock agreement to supply the cracker with propane and naphtha, while PV Gas, a subsidiary of PetroVietnam, signed a MoU to supply ethane, said the official.
Operational in four years
Following the signing of this joint venture agreement, and finalisation of the financing agreements, the commercial operation is expected to start in the next four years.
Capacity and facilities
The complex will have a capacity of 1.4mn tonnes olefins from a flexible cracker utilising feedstock as ethane, propane and naphtha, with supporting infrastructure, such as storage facilities, port, jetty, power plant and other utilities.
Fully integrated
Furthermore, the cracker will be fully integrated with a wide range of downstream products, including polyethylene, polypropylene and vinyl chloride monomer.
The majority of these products will be consumed domestically said Trakulhoon.
