On February 13, Long Son Petrochemical Company Limited (LSP) informed that the project to renovate Long Son Petrochemical Plant in Vung Tau City, Ba Ria - Vung Tau Province is being implemented, aiming at the goal of sustainable development.
The renovation project, with a total investment of 500 million USD from the group's internal cash flow, aims to integrate ethane feedstock at LSP, helping to reduce production costs, enhance long-term competitiveness, and contribute to reducing carbon emissions.
The main items of the project include: construction of ethane storage tanks (2 tanks with a capacity of 50,000 tons/tank) and renovation of the cracking plant to process input materials with high ethane content. The renovation project is expected to be implemented in about 2.5 years (completed by the end of 2027).
At the same time, LSP also has a 15-year supply contract with a capacity of 1 million tons of ethane/year from the US; a long-term lease contract for 5 large ships to transport ethane to Vietnam.
According to LSP representative, in the face of challenges in the petrochemical industry, with record low profit margins and unpredictable fluctuations in the global economy, LSP will flexibly adjust production plans to respond more effectively. Implementing the renovation project to switch to using ethane will help LSP significantly reduce input costs, increase production flexibility and reduce carbon emissions.
Previously, LSP had operated the Long Son Petrochemical Plant with a total investment of more than 5 billion USD since September 30, 2024. This is the largest FDI project in Ba Ria - Vung Tau province and the leading project in the country. However, in the face of the global petrochemical industry declining with supply exceeding demand and decreasing demand for petrochemical products, LSP had to temporarily suspend commercial operations since November 2024.
