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"The visit marks a significant milestone for the project, which has now reached 70% completion and employs over 2,500 people on site. Construction is progressing at full pace, with major equipment, including giant furnaces and modular plant components, already installed. Civil works are nearing completion, and utility integration is well underway,” the official INEOS statement reads. Commissioning and Outlook |
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The Long Son Petrochemical Complex (LSP), Vietnam’s first fully integrated petrochemical facility, has experienced a turbulent launch and operational trajectory since its much-anticipated commercial start-up in late 2024. This article aggregates the latest developments, contextualizes them within broader industry trends, and references previous communications that highlighted both optimism and early warning signs. Background and Launch Long Son Petrochemicals Co., Ltd., located in Ba Ria-Vung Tau and wholly owned by Thailand’s SCG Chemicals (a subsidiary of SCG Group), represents a $5.2–5.4 billion investment and is designed to produce 1.55 million tonnes of polyolefins (polyethylene and polypropylene) annually. The complex includes a world-scale, so-called Flex Feed Cracker with a capacity of 998,000 tonnes of ethylene, 500,000 tonnes of propylene, and 101,000 tonnes of butadiene per year, using naphtha, LPG, and soon, ethane as feedstock. *Data from the Long Son Environmental Permit (in Vietnamese Language) dated August 30, 2023.
After years of construction and trial runs, LSP officially began commercial operations on September 30, 2024. The launch was heralded as a transformative step for Vietnam’s plastics and downstream manufacturing sectors, reducing reliance on imports and boosting local industry competitiveness. Operational Suspension and Financial Losses Despite the high-profile start-up, LSP suspended operations in mid-October 2024—just two weeks after commercial production began. This abrupt halt was attributed to:
SCG Chemicals reported a staggering loss of $303.6 million from LSP in 2024, with monthly expenses at the complex reaching $35.5 million—40% of which are non-cash items like depreciation. The financial drag from LSP sharply reduced SCG’s consolidated profit, even as its other businesses remained profitable. Capacity Questions and Technical Details Our prior communication raised questions about the actual cracker capacity and the interpretation of trial run figures, whereby we issued a mass balancing challenge that still awaits contributions from users of the PPPLUS Platform. Various data sources have reported diverging plant capacities for both the cracker and the downstream plants. In addition, calculated feedstock requirements to match the reported ethylene and propylene outputs are not making any sense in terms of cracker capacity. The figures we have used to generate the site's mass balance and process flow chart are taken from the Long Son Environmental Permit (in Vietnamese Language) dated August 30, 2023. During the brief operational window, initial output was reported at 74,000 tonnes—well below nameplate, reflecting the ramp-up phase and subsequent shutdown. Strategic Adjustments and Future Plans SCG has not abandoned the project. Instead, it is adapting the business model to address structural challenges:
Market and Policy Environment Vietnam’s government has signaled support for LSP’s expansion, promising to streamline procedures and facilitate stable gas imports, including ethane from the U.S.. However, the domestic market remains under pressure from competitive international polyolefin imports and subdued export demand. Summary on Key Facts and Timeline
Outlook The Long Son Petrochemical Complex exemplifies both the promise and pitfalls of mega-projects in volatile global markets. While its technical capabilities and strategic significance remain intact, the project’s near-term viability hinges on market recovery, successful feedstock diversification, and continued government support. SCG’s willingness to invest further and adapt its strategy suggests a long-term commitment, but the road to profitability remains challenging and closely watched by industry observers.
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The complex supplied 100% of domestic PE and 68% of PP demand in 2024 |
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Strategic Context PRefChem, a 50:50 joint venture between Malaysia’s state oil company Petronas and Saudi Aramco, operates the integrated refinery and petrochemical complex at Pengerang, Johor. The facility is a cornerstone of the Pengerang Integrated Complex (PIC), which is Malaysia’s only fully integrated refinery, steam cracker, and petrochemical site. The complex is designed with multiple train configurations—including the two-train RFCC system using Axens technology (R2R) —to enhance production reliability and flexibility. Despite facing recurring operational disruptions since 2023, the company continues to invest in new technologies and capacity expansions to support long-term growth and regional energy security:
Market Positioning
Analysts note that while near-term operational reliability concerns persist, PRefChem's long-term growth pipeline and low-carbon investments position it to capitalize on Southeast Asia's rising petrochemical demand. |
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Strategic Significance
With the successful completion and startup of EP-600, Nizhnekamskneftekhim and SIBUR have reinforced their leadership in Russia’s petrochemical industry, laying the groundwork for further growth and innovation in the sector. |
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Lukoil Stravolen petrochemical producer has been created, some of the technologies added with known capacities. |
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Nizhnekamskneftekhim manufacturing site has been created and its first and second ethylene plants have been added.
#linde #ethyleneplant #steamcracker #sibur #nizhnekamskneftekhim |
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PJSC "Nizhnekamskneftekhim" has been created. |
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Dow Werk Böhle has been created, cracker and production capacities have been added.
#steamcracker #naphthacracker #dow #germany #böhlen |
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Ibaraki plant cracker and ethylene capacity have been added.
#mitsubishi #chemical #ibaraki #kashima #steamcracker #naphthacracker #ethyleneplant |
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Cracker technology has been identified, OCT plant and olefins nameplate capacities added.
#lummus #steamcracker #liquidcracker #naphthacracker #osaka #japan #mitsui #mcm #ethylene #oct #propylene |
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The description of the Idemitsu Tokuyama Complex has been updated.
#idemitsu #tokuyama #tokuyamacomplex #japan #naphth #steamcracker #naphthacracker |
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Silleno project has been modelled, with technologies and their respective capacity identified, excepted for the ethylene dimerization process. #silleno #kazakhstan #axens #alphabutol #cpchem #martech #adl #martechadl #dualloop #bimodal #univation #unipolpe #lummus #steamcracker #srt #steamcracking #gascracker #ethylene #polyethylene |
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Dow Tarragona North has been created and the cracker plant has been added as well as ethylene and propylene production. |
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Shell Polymer Monace site has been modelled with its complete mass balance and identification of technologies employed with their production capacities. |
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Saudi Arabian Oil Co., DHAHRAN, 17th Nov 2022, Aramco affiliate S-OIL to build one of the world’s largest petrochemical crackers in South Korea Aramco is making its biggest ever investment in South Korea to develop one of the world’s largest refinery-integrated petrochemical steam crackers through its S-OIL affiliate, in line with the company’s strategy to maximize the crude to chemicals value chain. The $7 billion Shaheen project aims to convert crude oil into petrochemical feedstock and would represent the first commercialization of Aramco and Lummus Technology’s TC2C thermal crude to chemicals technology, which increases chemical yield and reduces operating costs. It follows an earlier $4 billion investment into the first phase of the petrochemical expansion completed in 2018. Located at S-Oil’s existing site in Ulsan, the new plant is planned to have the capacity to produce up to 3.2 million tons of petrochemicals annually and include a facility to produce high-value polymers. The project is expected to start in 2023 and be completed by 2026. The steam cracker is expected to process by-products from crude processing, including naphtha and off-gas, to produce ethylene — a building block petrochemical used to make thousands of everyday items. The plant is also expected to produce propylene, butadiene and other basic chemicals. |
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DOW Chemical’s industrial complex, in Terneuzen, The Netherlands |
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Multiple technologies have been identified and added.
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Mixed feed cracker with KBR SCORE technology has been created and its productions have been added. |
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July 2, 2018 | KBR SCORE™ Technology Selected for GS Caltex Grassroots Olefins Plant in South Korea 29th Aug 2018 | GS Caltex to Build Olefin Plant in Yeosu for 2.6 Tln Won 11th Nov 2022 | GS Caltex completes construction of $2 billion petrochemicals manufacturing plant. 4th Jul 2024 | Korea’s GS Caltex to debottleneck Yeosu cracker in Sep |
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Lummus Catofin catalytic dehydrogenation and Technip Lliquid steam cracker plants have been added together with their main productions. |
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BASF successfully installed steam cracker module at its Zhanjiang integrated site 20th Nov 2024 | Source: Zhanjiang Cloud Media | Author: Reporter Chen Yan Recently, the steam cracker module of BASF’s Zhanjiang integrated base was successfully installed, marking a new milestone in the construction of the project and taking a solid step towards the goal of putting the integrated core into operation by the end of 2025. Tian Yaqing, senior vice president of integrated project management at BASF's new integrated site in China, said that the modular construction concept adopted by the plant has significant advantages in terms of efficiency, safety and quality. "By using pre-assembled modules, we can simplify the construction process, shorten the project duration and minimize on-site disturbance. This approach not only improves safety through more controlled assembly in a factory environment, but also ensures the stability of the quality of each component." Currently, BASF's Zhanjiang integrated base is making every effort to build its integrated core, including a steam cracking unit and multiple downstream units for the production of petrochemicals, intermediates, etc. |
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8/2/2023 9:45:00 AM | Hydrocarbon Processing INEOS has completed the formation of a 50/50 joint venture with SINOPEC for the Tianjin Nangang Ethylene Project, announced in December 2022, which is currently under construction by SINOPEC and expected to be on-stream by April 2024. The petrochemical complex includes a 1.2 mtpa cracker, a new 500ktpa High-Density Polyethylene plant to produce INEOS pipe grade under license and 11 other derivative units. The completion of the agreement today marks the continued progression of the significant petrochemical deals announced by the parties in July and December last year, and highlights the close relationship and growing collaboration between SINOPEC and INEOS. |
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Details about Dagang area refinery added. |
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Steam cracker technology has been identified as supplied by Linde. |
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With a total investment of 27.8 billion yuan, a new million-ton ethylene project was launched. |
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Datails about SINOPEC Hainan Refining and Chemical Co., Ltd. and Danzhou complex have been updated.
#sinopec #danzhou #refining #chemicals #steamcracker #ethylene #china |
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Both phase I and Phase II Ethane-to-Ethylene projects have been geographically located. Phase I mass balance has been initialized. |
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Ethane and propane imports added, more production capacities added as well. |
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Some productions have been added to the site and a few technologies have been identified. |
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Some productions and consumptions have been added to site. Corresponding technologies need to be identified.
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HPPO plant, propylene oxide production and imports of naphtha and hydrogen peroxide have been added. |
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Several technologies and production capacities have been added to HMEL's Guru Gobind Singh Refinery. |
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Site created. |
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The Mass Balance of Joffre chemical site has been completed, which also includes onsite INEOS LAO plant, the onsite DOW-Nova Ethane Cracker E3 JV and ethylene shipment to nearby DOW Prentiss site from the E3 plant. |
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The Ethylene 3 JV between DOW Chemicals Canada ULC and NOVA Chemicals Corporation has been added ,as well as the corresponding production site in Joffre, Canada. |
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Mass Balances of Borouge 1, Borouge 2 and Borouge 3 have been completed. Borouge 4 site's model has been initialized but will be finalized when the project comes on-stream. With each further stage, the sites are becoming more complex, as shown in the mass balance table of Borouge 3. The Mass Balances are presented as simplified block flow diagrams (Borouge 1 visual, Borouge 2 visual, Borouge 3 visual). Technologies have been identified for all assets of all three projects as shown for the Borouge 3 technology table. By clicking on the blue 'T' icons in the diagrams or on the technology name in the technology table, the corresponding technology is shown (e.g. Linde Steam Cracker) and by clicking on the green 'F' icons, the flow details for the corresponding asset are displayed. |
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On April 1st, INEOS has completed the acquisition of TotalEnergies’ 50% share of Naphtachimie (720 ktpa steam cracker), Appryl (300 ktpa polypropylene business), Gexaro (270 ktpa aromatics business) and 3TC (naphtha storage, a 50/50 JV between Petroineos and TotalEnergies) announced on July 5th. These businesses have until today been joint ventures between the two companies. A number of other infrastructure assets have also been acquired including part of TotalEnergies ethylene pipeline network in France. INEOS will now fully integrate the Naphthachimie, Gexaro and Appryl petrochemical businesses, assets and infrastructure into INEOS Olefins & Polymers South at Lavera in Southern France. Gexaro, which is located on the Lavera refinery site will continue to be operated by Petroineos. |