SP Chemicals Halts $11B Petrochemical Proj in Vietnam

Singapore-based SP Chemicals Ltd. will suspend Hoa Tam petrochemical industrial park and Phu Yen Naphtha Cracking petrochemical complex worth $11 billion in total in central Phu Yen province, SP Chemicals’ general director said on a letter sent to the provincial authorities in mid-Apr.

 

SP Chemicals’ general director did not specify the reasons for the move.

 

Since receiving the license from the prime minister in August 2007, the province has closely cooperated with SP Chemicals to speed up preparations including projecting 1,300 hectares of land and 1,300 hectares of water surface in Hoa Tam commune to start construction of the project as soon as possible.

 

In the first phase of the project, slated for completion in 2014, SP Chemicals is expected to invest $1.5 billion to build an ethylene facility with estimated annual output of 800,000 tons, a deep seaport to accommodate 250,000 DWT vessels, and furnishing infrastructure network including power and water supplies for Hoa Tam park.

 

In the second development phase until 2024, the firm aims to build an oil refinery with an annual processing capacity of 10 million tons to supply raw material naphtha for the ethylene facility, a 300,000-ton polyethylene facility, and a 200,000-ton polypropylene facility.

 

Provincial authorities are requesting SP Chemicals to pay VND23.12 billion ($1.36 million) as compensation for clearing the site; however, they have not received any reply from the firm, the Vietnam News Agency reported.

 

The company's investment plan was once considered the largest petrochemical project in Vietnam. (Vietnam & World Economy)