LSP’s olefins process is designed for gas feedstock flexibility. As such, the majority of the investment for the project will go toward handling and storage of the Ethane feedstock, which requires a temperature as low as -90 degrees Celsius. Once completed, LSP will be able to utilize Ethane as much as two-thirds of the total feedstock, in addition to Propane and Naphtha.

LSP began commercial operations on September 30, 2024, with an initial production output of 219,000 tons during the 9-month trial phase. The company’s state-of-the-art $5 billion integrated petrochemical complex has been widely recognized for its high-quality products and operations.

However, the petrochemical industry, known for its cyclical nature, is currently experiencing a severe downturn with historically low margins. This unprecedented market condition is attributed to the prolonged post-pandemic effects globally, significant capacity expansion in China, and high oil prices due to geopolitical tensions.

SCG Chemicals (SCGC), its parent company, is focused on optimizing the production of all three plants—Rayong Olefins (ROC), Map Ta Phut Olefins (MOC), and LSP—to align with raw material prices, product demand, and the global economic situation, maximizing overall competitiveness. The LSP complex has temporarily suspended operations since the end of October to manage overall business costs, with plans to reassess operations when market conditions are more favorable.

During this period, LSP remains committed to its employees, business partners, and the long-term viability of its business. The company will continue to focus on: Preserving Assets: Enhancing the integrity and reliability of its facilities; Driving Efficiency: Implementing cost-saving measures; Developing Workforce: Investing in employee training and development of its 1,000 employees.

"By prioritizing operational excellence and investing in our people, we are confident in our ability to navigate these challenging market conditions and be ready when we have to resume the operation," said Mr. Kulachet Dharachandra, General Director of LSP. "Additionally, we are grateful for the support from authorities in expediting the investment license and permit process for the ethane feedstock project. This additional strategic investment underscores our commitment to navigating the current industry challenges and our role as a key contributor to Vietnam's sustainable growth."