Thai SCG signs long-term US ethane supply deal for Long Son complex

According to a press release, SCG Chemicals (SCGC) is accelerating its Ethane Feedstock Enhancement Project at the Long Son Petrochemicals (LSP) plant in Vietnam to boost competitiveness and lower production costs. The company has secured a long-term agreement with an affiliate of Enterprise Products Partners to source 1 million tons/year of ethane from the US for 15 years. Additionally, SCGC has signed a time charter agreement with Mitsui O.S.K. Lines (MOL) for three Very Large Ethane Carriers (VLECs) to transport ethane from the US to Vietnam, with two more agreements still in progress.

The LSP plant has been optimized to use up to two-thirds of its feedstock from ethane, with the remainder consisting of propane and naphtha. SCGC is speeding up the construction of ethane storage tanks and upgrading production processes and infrastructure to support the new feedstock.

The ethane project is set for completion by the end of 2027, aligning with the expected recovery of the petrochemical industry in the region.

Vietnam’s Long Son complex began commercial operations on September 30 as the country’s first integrated petrochemical facility, producing PE, PP, and basic chemicals. In mid-October, the complex was shut down due to rising production costs and lower chemical margins.