The Siam Cement Public Company Limited (SET: SCC) has disclosed the update to the Stock Exchange of Thailand on the company’s Ethane feedstock enhancement project for Long Son Petrochemicals (LSPE) that SCG Chemicals (SCGC), a wholly owned subsidiary of SCC, has secured two additional vessels for the Long Son Petrochemicals Co. Ltd. (LSP) operations in Vietnam.
The vessels are classified as Very Large Ethane Carriers (VLECs), and the long-term time charter agreement was signed on March 17, 2025 between SCGC and Mitsui O.S.K. Lines, Ltd. (MOL), through its subsidiary. Under the agreement, MOL will provide 15-year logistic service of ethane from the USA to Vietnam. As a result, MOL’s subsidiary will provide a total of 5 VLECs for LSPE’s operation.
In summary, the LSPE project has an estimated investment of approximately $500 million (or approximately THB 18,000 million), with the majority of the investment allocated to ethane storage tanks, while the chartering for 5 VLECs is classified under a long-term service agreement. Funding for this project will preliminarily come from SCC’s internal sources. LSP’s initial usage of ethane will commence by the end of 2027.
