Vinachem sells chemicals stake to PetroVietnam

PetroVietnam (PVN) has bought an 11% stake in the National Chemicals Group (Vinachem) in the Long Son Petrochemicals Complex project, the company confirmed Today.

According to both the parties, the capital transfer, which was included in the government's restructuring plan national organizations, was approved by the Prime Minister, Nguyen Tan Dung, in August.

The transfer of stake aims to use the investment to speed up the $4.5 million worth Ba Ria-Vung Tau-based Long Son Petrochemicals project.

Before the transfer, PVN contributed 18% of the project capital and Vinachem contributed 11%. Thailand and Qatar's investment accounted for the rest 71%. Now PVN contributes 29% of the project capital.

The 400-ha 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 tons 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 worth of high-quality plastic resins annually.

The project is expected to complete in the second quarter of 2019.