Expansion Updates: Siam Chemical Advances Ethane Feedstock Project in Vietnam; LyondellBasell to Expand Propylene Capacity in Houston

SCG Chemicals Advances Ethane Feedstock Project in Vietnam

Thailand-based SCG Chemicals (SCGC) has announced the latest progress on the ethane feedstock enhancement project (LSPE project) at the Long Son Petrochemicals Complex (LSP) in Vietnam. The company added that with the commencement of preparatory work for the ethane storage tanks, the project has achieved another key milestone.

The Long Son Petrochemicals Complex has signed an engineering, procurement, and construction (EPC) contract for the ethane storage tanks, with construction expected to be completed by the end of 2027. LSP is the first petrochemical complex in ASEAN to use imported ethane from the United States as a feedstock, which will significantly reduce raw material costs by more than 30% compared to current naphtha prices.

A consortium consisting of China TCC Engineering Corporation and PetroVietnam Technical Services Corporation, a subsidiary of PetroVietnam (PVN), has been selected as the contractor to build two ethane storage tanks, each with a capacity of approximately 55,000 tons. The company stated that these tanks will be able to store 1 million tons of ethane annually.

The LSPE project is estimated to require an investment of around $500 million, funded from SCGC's internal resources. In the past, using imported ethane from the US for the petrochemical industry faced many limitations, such as limited ethane storage and export capabilities in the US, long construction periods for very large ethane carriers (VLECs) requiring specialized construction techniques, and the need for long-term agreements to secure ethane supply.

Sakchai Patiparnpreechavud, CEO and President of SCG Chemicals, said: "As previously announced by SCG Chemicals, the project to increase feedstock flexibility through the use of ethane includes the supply chain to LSP, which comprises: 1) ethane supply agreements with export terminals; 2) very large ethane carriers; 3) specially designed storage tanks for ethane, given its unique properties and

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