On August 20, Long Son Petrochemical Co., Ltd. (LSP), a subsidiary of Thailand’s SCG Group, announced the restart of full operations at the complex. The facility had been temporarily shut down to manage costs. The decision to resume came amid a drop in crude oil prices, improving operational profit margins.

The company is also undertaking a $500 million upgrade project known as LSPE, scheduled for completion in 2027. This initiative will incorporate ethane into the feedstock mix (currently naphtha and propane), which is expected to reduce operating costs by more than 30%, lower greenhouse gas emissions, and enhance long-term competitiveness.

LSP General Director Kulachet Dharachandra stated that falling crude oil prices provided an opportunity to restart the plant while maintaining strong links with customers and the supply chain.

He emphasized that diversifying raw materials with ethane is a key strategy to boost competitiveness and strengthen Vietnam-US economic and trade relations. The LSPE project is expected to create over 1,000 construction jobs and spur local economic growth.

The Long Son Petrochemical Complex, located in Long Son Commune, Ho Chi Minh City (formerly under Ba Ria - Vung Tau Province), broke ground in 2018. It is invested by SCG Group and its subsidiaries, with a total investment exceeding $5 billion.

The project includes an upstream olefin plant, three downstream polyolefin plants (HDPE, LLDPE, and PP), and a port infrastructure system. Its design capacity reaches 1.4 million tons of olefin resin per year, supplying essential materials for industries such as packaging, agriculture, electronics, and automotive.

In 2024, just one month into commercial operations, LSP suspended activities from mid-October to control costs while awaiting more favorable market conditions.

Quang Hung