SCG Chemicals (SCGC), a subsidiary of Thailand’s Siam Cement Group (SCG), has signed a 15-year ethane supply contract to provide feedstock for its Long Son Petrochemicals (LSP) complex in Vietnam.
In a recent Stock Exchange of Thailand (SET) filing, SCG reported that SCGC and Enterprise Products Partners LP signed the agreement through their subsidiaries. The US-based partner, a leading ethane supplier, will provide 1Mt of ethane per year on a free-on-board (FOB) basis for 15 years.
SCGC has also partnered with Japan’s Mitsui OSK Lines Ltd to transport the ethane. The Japanese firm will supply three very large ethane carriers (VLECs) under a 15-year time charter agreement to deliver the feedstock from the United States to Vietnam.
SCG expects the LSP complex’s ethane integration to be completed by the end of 2027. The complex, which currently operates with propane and naphtha as feedstock, represents SCG’s largest investment in Vietnam at US$5.2bn.
Construction began in 2018 in Ba Ria-Vung Tau province, with full utility start-up in 2022. LSP conducted a full test run in December 2023 and began commercial operations in September 2024. The complex produced 74,000t of output during its trial phase, and once fully operational, it will have an annual production capacity of 1.4Mt of polyethylene and polypropylene.
In November 2024, SCG announced a further US$700m investment in LSP to diversify production. The expansion will utilise imported ethane, enabling the complex to reduce feedstock costs, increase flexibility, and lower carbon emissions.
