SP Chemicals Plans US$11Bln Petrochemical Complex in Vietnam

Singapore’s SP Chemicals plans to invest US$11 billion in a petrochemical industrial complex in central Vietnam, local media has reported.

 

SP Chemicals and authorities of central Phu Yen province approved on September 08 an infrastructure plan for the project.

 

The investment will go to 1,300-hectare complex, consisting of 11 petrochemical plants and a big port, in Hoa Tam ward, Dong Hoa district until 2024.

 

SP Chemicals will directly invest US$5 billion in to the project while calling the remainder from other investment partners, Phu Yen authorities said to the press.

 

“The investor will have to complete all feasibility study [by next year]. The project is expected to receive an operating license by the end of 2008,” said Bui Ngoc Binh, a senior official of Phu Yen People’s Committee, the governing body. 

 

In the first stage, SP Chemicals will develop infrastructure for the 500-hectare Hoa Tam petrochemical industrial zone, including a port project for ships 250,000 DWT ships and a petrochemical facility between now and 2014. The company has set aside $1.5 billion for this work, including $1.2 billion for the petrochemical facility.

 

This Phu Yen Naphtha Cracking Petrochemical Complex will produce 800,000 tons of ethylene and related petrochemical products a year. This is expected to go on-stream in 2012.

 

In the second phase trough 2024, SP Chemicals will spend $3.5 billion in expanding production capacity.

 

Output will be sold to China, Japan and South Korea.

 

The complex will need 10,000-15,000 employees.

 

SP Chemicals also hopes to build an oil refinery in central Binh Dinh province, for which a feasibility study is being prepared. This refinery will process crude oil imported from the Middle East for domestic use and export to China. (Local sources)