PetroVietnam Gas (PV Gas) has signed a memorandum of understanding (MoU) with Thailand's SCG Chemicals to supply raw materials to its Vietnam-based petrochemicals complex.
The MoU was signed by Nguyen Quoc Khanh, chairman of PV Gas, and Roongrote Bhicharnpakdee, president and CEO of SCG Chemicals, in Hanoi on Monday.
Under the MoU, PV Gas will supply ethane and propane to SCG Chemicals' Vietnam plant, which is located in the Bac Ninh province, north of Hanoi. The plant has a capacity of 400,000 tonnes per year and produces ethylene, propylene, butadiene and other petrochemical products.
The supply of raw materials from PV Gas is expected to help SCG Chemicals to increase its production capacity and meet the growing demand for petrochemical products in Vietnam and the region.
The MoU is a significant milestone in the cooperation between PV Gas and SCG Chemicals. It is also a sign of the growing importance of the petrochemical industry in Vietnam.
The petrochemical industry is a key driver of economic growth in Vietnam. It is also a major source of exports for the country. In 2022, the petrochemical industry contributed 10% to Vietnam's GDP and accounted for 20% of the country's exports.
The MoU between PV Gas and SCG Chemicals is expected to help to further boost the development of the petrochemical industry in Vietnam. It is also expected to create jobs and generate economic benefits for the country.
The MoU is a win-win for both PV Gas and SCG Chemicals. It will help PV Gas to increase its revenue and market share, while it will help SCG Chemicals to increase its production capacity and meet the growing demand for petrochemical products in Vietnam and the region.
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