Land delay for Long Son complex near resolution

Construction of what will be Vietnam’s largest petrochemical complex is expected to satisfy local industries’ demand

In a meeting with PetroVietnam, a shareholder of the Long Son joint venture, related to the land hand-over and compensation for local residents who have to yet to move out, the province’s Chairman Nguyen Van Trinh said that more than 318 out of 464 hectares of land for the Long Son petrochemical complex had been transferred to the developer, with the remaining 145ha proving the last stumbling block with local residents.

“We set a target to solve all the problems and want to transfer the land in April at the latest,” Trinh said.

He added that the local authorities and the project developer would offer fair policies to support the remaining, largely-poor local residents who would face difficulties in making a living following resettlement.

The $4.5 billion Long Son petrochemical complex is jointly developed by Thailand’s SCG, Qatar Petroleum International, and PetroVietnam. The joint venture received an investment certificate in 2008, but has not yet started construction because of site clearance issues. The complex was previously slated to begin construction 2014 and be completed in 2017. Taking into account the delays, operations are likely to commence only by mid-2019.

The Long Son petrochemical complex will be the biggest of its kind in Vietnam and is intended to meet the growing demand of local industries for high-quality plastic resins, valued at up to $2 billion annually.

The complex will consist of a factory capable of turning out 1.65 million tonnes of olefins, 1.45 million tonnes of polyolefins, 280,000 tonnes of chlor-alkali and other materials each year. The site will also include supporting facilities including a port, warehouses, and a power plant.