A graphic image of Long Son petrochemical complex in the southern province of Ba Ria - Vung Tau. Photo credit: baobariavungtau.com.
SCG Chemicals Co, a subsidiary of Thai industrial conglomerate Siam Cement Group, has been in talks with several foreign businesses for partnership in a US$4.5-billion petrochemical complex in Vietnam, The Bangkok Post reported on Thursday.
The company made the move after Qatar Petroleum International, which owns a 25 percent stake in the Long Son project in the southern province of Ba Ria-Vung Tau, announced its exit as part of its restructuring plan in October.
The biggest shareholder with a 46 percent stake, SCG Chemicals Co. reportedly met with the Qatar company and another investor state-owned oil and gas group PetroVietnam in September to discuss the transfer of the Qatar stake, but they failed to reach an agreement.
In an interview with The Bangkok Post, SCG's CEO and president Kan Trakulhoon said the Qatar partner's withdrawal has indeed impacted the project, which is slated to produce one million tons of ethylene annually when going online in 2018.
He said there will be changes to the complex's ownership, but SCG will remain a major shareholder.
“Everything in Vietnam is going quite well,” Kan said. “We are still confident everything will go ahead as planned.”
The complex, which is Vietnam's first fully integrated petrochemical complex, is part of SCG's plan to raise profits amid plunging oil prices, and expand business in Southeast Asia, according to the Post.