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Qatari investor withdraws from petrochemical complex

Released at: 17:56, 31/10/2015

Qatari investor withdraws from petrochemical complex

Remaining partners PetroVietnam and SCG to work together on capital transfer and material supply.

by Quynh Nguyen

In a report submitted to the government the Key Projects Management Board advised that the Qatari investor has officially withdrawn from the Long Son Petrochemical Complex project.

In southern Ba Ria Vung Tau province, the complex is being jointly developed by Thailand’s SCG, Qatar Petroleum International, and PetroVietnam, and was granted an investment license in 2008 with total investment capital of $3.77 billion.

At high-level meetings between the parties the Qatari investor announced it would withdraw from the project due to the restructuring of its development strategy. Qatar Petroleum International has not approved the project’s works, seriously delaying its progress.

With the aim of removing these obstacles, the Ministry of Industry and Trade (MoIT) has requested Thailand’s SCG collaborate with PetroVietnam to negotiate with Qatar Petroleum International on the transfer of capital and to maintain material contracts for the project expected to be provided by Qatar. At the same time the parties are to continue to seek other partners and other raw materials to move the project forward.

MoIT is also negotiating with the Qatari Ministry of Energy and Industry to identify possible solutions.

Once completed the Long Son Petrochemical Complex will be the largest of its kind in Vietnam and is intended to meet the growing demand of local industries. The complex will consist of a factory capable of turning out 1.65 million tonnes of olefins, 1.45 million tonnes of polyolefins, 280,000 tonnes of chlor-alkali, and other materials each year. The site will also include support facilities, including a port, warehouses, and a power plant.

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