On August 20th, Long Son Petrochemical Company Limited (LSP, a subsidiary of SCG Group - Thailand) announced the restart of its entire petrochemical complex after a temporary shutdown aimed at controlling costs. The decision was made amidst falling crude oil prices, which helped improve operating profit margins.

This company is also implementing a $500 million LSP (Low-Recycled Power Plant) modernization project, expected to be completed in 2027. The project aims to integrate ethane into its feedstock portfolio (currently consisting of naphtha and propane), helping to reduce operating costs by more than 30%, cut greenhouse gas emissions, and enhance long-term competitiveness.

Long Son Petrochemical Complex resumes operations after a one-year suspension.
LSP restarts full operation of its integrated petrochemical complex after nearly a year of suspension. Photo: LSP

Kulachet Dharachandra, CEO of LSP, said that the drop in crude oil prices has opened up opportunities for the complex to restart operations while maintaining connections with customers and the supply chain.

He emphasized that diversifying raw material sources with ethane gas is a key strategy, both to strengthen competitiveness and to contribute to closer economic and trade relations between Vietnam and the United States. The LSPE project is expected to create more than 1,000 jobs during the construction phase and promote local economic development.

The Long Son petrochemical complex commenced construction in 2018, invested by SCG Group and its subsidiaries, with a total capital of over 5 billion USD. The plant is located in Long Son commune, Ho Chi Minh City (formerly part of Vung Tau City, Ba Ria - Vung Tau province).

The project includes an upstream olefin plant, three downstream polyolefin plants (HDPE, LLDPE, PP), and a port infrastructure system. The designed capacity reaches 1.4 million tons of olefin resin per year, providing essential raw materials for various industries such as packaging, agriculture , electronics, and automotive.

In 2024, after one month of commercial operation, LSP temporarily suspended operations from mid-October to control costs and await more favorable market conditions.

Source: https://vietnamnet.vn/to-hop-hoa-dau-hon-5-ty-usd-van-hanh-lai-sau-gan-1-nam-tam-dung-2434115.html