Qatar Petroleum announces 15-year agreement for the sale of LPG and Naphtha to Vietnam
DOHA, Qatar • 29 April 2018 – Qatar Petroleum has announced an agreement to supply Vietnam with up to 2 million tons per year of LPG and Naphtha for a period of 15 years.
The long-term agreement was signed by Qatar Petroleum for the Sale of Petroleum Products Company Ltd. (“QPSPP”) and Long Son Petrochemicals Company Limited (“LSP”), a subsidiary of The Siam Cement Public Company Limited. Qatar Petroleum acts as the marketing agent for QPSPP.
The agreement will commence with the start of Vietnam’s first green-field petrochemical complex, which is being constructed on Long Son Island, 100 km southeast of Ho Chi Minh City. The large facility is expected to begin production in 2022.
Mr. Saad Sherida Al-Kaabi, the President & CEO of Qatar Petroleum, welcomed the signing of the agreement and said “we are pleased to enter into this agreement for the supply of Naphtha and LPG to Vietnam. This agreement has a significant importance as it is the first time that Qatar is selling LPG and Naphtha on long-term basis as well as the first time that we are selling directly to Vietnam.”
Mr. Al Kaabi added “I would like to thank LSP and its shareholders for their trust in Qatar Petroleum by entering into this agreement for the supply of feedstock to LSP for the next fifteen years. This is an important project for Vietnam and the new agreement reflects the trust of the markets and customers in Qatar Petroleum as a reliable supplier. We attach great importance to partnerships that would help our customers meet their energy needs .This agreement will expand Qatar’s footprint into the growing markets of Southeast Asia and we believe that LSP is the right partner for us in this endeavor.”
Mr. Cholanat Yanaranop, President of SCG Chemicals Co., Ltd. and Board Member of LSP, commented “this agreement is very crucial to LSP. It provides the security and flexibility of feedstock to LSP’s olefins flexible feed cracker, which will enhance the competitive advantage of LSP over its peers.”
The LSP Project will have a million tons per year ethylene cracker with flexible gas and naphtha feed to yield in total olefins production capacity of up to 1.6 million tons per year depending on the feedstock mix.