On November 11, 2026, in the Longshan Petrochemical Plant area on the outskirts of Ho Chi Minh City, the production equipment temporarily returned to quiet, and maintenance personnel and engineering vehicles shuttled between the pipe galleries. On this day, SCG Thailand announced its latest schedule: Vietnam's first large-scale integrated petrochemical complex will resume production in the second quarter of 2027 after completing the ethane raw material transformation and full plant maintenance. The window period of device shutdown is being used to switch to a more stable raw material route.

Ethane substitution for naphtha

The project will suspend production at the end of May 2026 due to changes in the Middle East situation affecting the supply of raw materials such as naphtha. SCG has decided to utilize the shutdown period to advance a $500 million ethane feedstock upgrade, allowing the facility to process ethane imported from the United States and reduce reliance on Middle Eastern naphtha. According to enterprise calculations, the cost of ethane raw materials is expected to be about 40% lower than that of some alternative raw materials, and after the transformation is completed, it can reduce production costs by more than 250 million US dollars per year. The scope of the renovation involves ethane storage, raw material transportation, adaptive adjustment of production equipment, and construction of supporting facilities.

Parallel maintenance and renovation

During the shutdown period, the entire factory will undergo simultaneous maintenance and equipment upkeep. During the peak period, it is expected that about 5000 staff will participate in on-site operations, and maintenance and renovation will be carried out in the same factory area. SCG also plans to reduce the proportion of raw material procurement from the Middle East to below 25% to improve supply chain stability. For enterprises with petrochemical construction experience, there is a certain market value in the installation of storage tanks, process pipelines, equipment, and industrial maintenance. However, some projects may have already been included in the existing contracting system, and the addition of bidding space needs to deduct the coverage of existing contracts. Keywords: Southeast Asian news and information, petrochemicals, Vietnam

Focus on resuming production in the second quarter

According to the latest plan announced on November 11, 2026, Longshan Petrochemical is expected to restart in the second quarter of 2027, gradually increase production load, and strive to complete relevant trial operation work by the end of the third quarter of 2027. Compared to the previous plan, the related work is expected to be completed about three months ahead of schedule. Longshan Petrochemical's designed annual production capacity for polyolefins is about 1.4 million tons, and the pace of resuming production has been advanced, which means that the transformation, maintenance, and personnel organization need to be more closely linked. Whether the adjustment of raw material routes can be implemented as planned will directly affect the cost structure and supply stability of this large-scale petrochemical project in Vietnam in the future.Editor/Gao Xue