Posco awarded Long Son petchem project in Vietnam

Posco Engineering & Construction (Posco E&C) has signed a KRW81.2 billion contract to lay the groundwork for Long Son Petrochemical Complex (LSPC), wholly owned by Thailand’s SCG, in Vietnam.

The South Korean builder will work on the 2.31 million sq m site on Long Son Island in the southern province of Ba Ria-Vung Tau. Work on the project, won from Vietnam Long Son Petrochemical (LSP)—the investor of LSPC—will begin next month with the completion date set at September 2020, the company said.

LSPC was kicked off recently after a delay of ten years, with SCG reaching an agreement to buy PetroVietnam’s 29% stake in LSPC.

LSPC is located in Long Son commune of Ba Ria-Vung Tau province, 100 km from Ho Chi Minh City. This integrated petrochemical complex will have a total olefin production capacity of 1.6 million tonnes/year.

It is designed to produce various petrochemical products, including essential plastic materials such as polyethylene, polypropylene, and other products in excess of 2 million tonnes/year, enabling it to substitute imported polyolefin products. Non-petrochemical supporting infrastructure, such as a deep sea port and other facilities, are also included.

In January, Posco signed a KRW750 billion contract to build storage tanks and a wharf facility that will serve the petrochemical complex.

It will build 28 petrochemical storage tanks with a total storage capacity of 300,000 tonnes at the petrochemical complex, raw material transfer pipelines, a quay for raw material products, and marine facilities. The builder aims to complete them in 2022.

Posco’s work includes Cai Mep International Port and an exclusive port for Vung Tau Cold Rolling Mill.