PVN buys stake in petrochemical complex
According
to both parties, the capital transfer, which was included in the
government's restructuring plan national organisations, was approved by
the Prime Minister in August.
The transfer of stake aims to use
the investment to speed up the 4.6-billion USD Ba Ria-Vung Tau-based
Long Son Petrochemicals project.
Before the transfer, PVN
contributed 18 percent of the project capital and Vinachem contributed
11 percent. Thailand and Qatar's investment accounted for the rest 71
percent. Now PVN contributes 29 percent of the project capital.
The
400ha petrochemical complex, considered the biggest of its kind in
Vietnam, will be located in the Long Son Industrial Zone near the Long
Son oil refinery. The project is in the preparation stage that includes
building of infrastructure and selection of contractors.
It is
designed to produce 2.7 million tonnes of polyethylene and
polypropylene, the raw materials required for the production of
polyvinyl chloride (PVC) and other kinds of chemical products, to serve
the increasing demand from the domestic petrochemical industry.
According to PVN, the local industries require up to 2 billion USD worth of high-quality plastic resins annually.
The project is expected to complete in the second quarter of 2019.-VNA