09:54 | 31/08/2017 Industry
The Vietnam National Oil and Gas Group (PetroVietnam) and the Siam Cement Group (SCG) of Thailand have just signed an agreement on accelerating the progress of a petrochemical project in southern Vietnam.
|PetroVietnam, SCG sign an agreement to speed up Long Son petrochemical project under the witness of PM Nguyen Xuan Phuc and Thai Prime Minister Prayut Chan-ocha - Source: VNA|
Under the agreement, which was signed during Prime Minister Nguyen Xuc Phuc’s official visit to Thailand, PetroVietnam and SCG will speed up the implementation of the petrochemical project in Long Son commune in the southern province of Ba Ria-Vung Tau, as well as the development of the Long Son Petrochemical Co. Ltd. (LSP) – the project’s investor.
The two sides agreed to provide optimal support for the LSP to implement the Engineering, Procurement and Construction (EPC) contract in the fourth quarter of this year while giving priorities to member units/subsidiaries of PetroVietnam to provide services and goods for the project in line with current laws, competitiveness and benefit of the LSP.
PetroVietnam and SCG also consented to contribute capital to ensure the implementation of the project.
Previously, a PetroVietnam delegation held a working session with SGC leaders to discuss cooperation opportunities in the petrochemical sector. The two sides expressed their hope to realise potentials with programmes and projects in the future.
Covering 464ha in the Long Son Industrial Park in Vung Tau city, the 5.4 billion USD petrochemical complex is one of the key petroleum projects. It is expected to be completed and put into operation in 2022, with a capacity reaching 1.6 million tonnes of olefin per year.
Using advanced technologies, the project meets requirements of environment protection, ensures safe operation, and produces high-quality petrochemical products.
During construction, the project will create jobs for between 15,000- 20,000 labourers. Once operational, it is expected to create jobs for over 1,000 labourers and contribute around 115 million USD per year to the provincial and the state budget during 30 years of operation.