Fumiko Dobashi, S&P Global Commodity Insights 2024-11-08 08:30:48
Long Son Petrochemicals (LSP) halted commercial operations at its petrochemical complex at Long Son Island, Ba Ria-Vung Tau province, Vietnam, in the middle of October amid negative petrochemical margins, notably for ethylene, LSP’s owner Siam Cement Public Co. (Bangkok) said during an analyst call on Oct. 31. Siam Cement’s petchem subsidiary, SCG Chemicals, operates LSP.
Siam Cement said LSP had started commercial operations on Sept. 30. However, it decided to shut down the unit due to negative margins. The restart date is still unclear.
Asia’s steam cracker operators have faced negative margins for the last few years amid high naphtha feedstock costs, notably against ethylene. Demand for ethylene in Southeast Asia has been muted, with several cracker operators running at reduced rates to manage costs.
Siam Cement said that, in a bid to cut losses, the company plans to invest in increasing the feedstock flexibility of LSP’s 950,000 metric tons per year cracker and boost its ethane gas cracking capability by the end of 2027. The plant is currently designed to crack propane gas and naphtha.
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