Qatar Petroleum announced an agreement to supply Vietnam with up to 2 million tonnes of LPG and Naphtha per year 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, under construction on Long Son Island, 100 km southeast of Ho Chi Minh City. The facility is expected to begin production in 2022.

QP President and CEO Saad Sherida Al-Kaabi welcomed the agreement and said they are pleased to supply Naphtha and LPG to Vietnam.

This agreement has a significant importance for us, as it is the first time that Qatar is selling LPG and Naphtha on long-term basis, and for the first time, directly to Vietnam.’

Al Kaabi said that he was thankful to LSP and its shareholders for their trust in Qatar Petroleum.

This is an important project for Vietnam and the new agreement reflects the trust of the markets and customers in Qatar Petroleum. 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 endeavour.’

Cholanat Yanaranop, President of SCG Chemicals Co Ltd and Board Member of LSP,  said the agreement is crucial to LSP as 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 tonnes per year ethylene cracker with flexible gas and naphtha feed to yield in total olefins production capacity of up to 1.6 million tonnes per year depending on the feedstock mix.

For more information about Qatar Petroleum, visit their website at qp.com.qa.