Benchmark project showcases Sinopec’s strength! At the October Ho Chi Minh International Oil & Gas Exhibition, explore Vietnam’s trillion-yuan LNG and cryogenic storage tank market together.

The 12th Vietnam International Oil & Gas Exhibition (OGAV) 2026 will be grandly held from October 21–23 at the Adora Convention & Exhibition Center in Ho Chi Minh City. The exhibition brings together over 600 global oil & gas enterprises and 15,000 ASEAN-based professional buyers. Concurrent high-level oil & gas technology forums will make OGAV the core business platform for connecting with Vietnam’s national petroleum entities, domestic refining & petrochemical firms, and LNG infrastructure projects. Vietnam is currently accelerating its petrochemical industry upgrade. The Long Son LSP Petrochemical Complex—the nation’s largest refining & petrochemical base—features a supporting cryogenic ethane storage tank project that stands as a landmark achievement for Chinese enterprises deepening their presence in Vietnam’s energy market—and serves as a flagship case prominently showcased by Chinese companies at this exhibition. I. Project Overview: A China–Vietnam Joint Venture Establishes Vietnam’s Cryogenic Storage Milestone The Long Son LSP Cryogenic Ethane Storage Tank Project is an EPC joint venture led by Tianchen Engineering Co., Ltd. (China Chemical) and Vietnam’s PTSC, with China National Chemical Engineering No. 14 Construction Company responsible for on-site construction. The project delivers two large-scale 120,000 m³ cryogenic ethane storage tanks—filling a critical technological gap in Vietnam’s domestic large-capacity cryogenic tank capabilities. Project Signing Ceremony Interior Construction Photo II. Three Core Technological Breakthroughs Demonstrating China’s Engineering Strength 1.1 Vietnam’s first 120,000 m³ cryogenic ethane storage tank features a single-tank dome weighing 616 tons, lifted to a height of 33.8 meters. Both tank volume and cryogenic insulation standards represent the highest specifications ever achieved in Vietnam—supporting the industrial park’s requirement for storing and transshipping hundreds of thousands of tons of ethane annually. 2.2 First overseas implementation of full-scale pneumatic jacking for an ultra-large storage tank: Facing complex overseas construction conditions and challenges of multi-party cross-border coordination, the Chinese team independently developed a comprehensive pneumatic jacking control plan. The dome was smoothly lifted in just three hours—safely and incident-free—setting a technical precedent for cryogenic tank construction across Southeast Asia. 3.3 Efficient execution: Project completed 43 days ahead of schedule. Leveraging China Chemical’s integrated EPC management system and advantages of domestically manufactured equipment, design, procurement, and construction were seamlessly coordinated—significantly shortening commissioning timelines and earning high recognition from both owner SCGC and Vietnam National Petroleum Group.

104 | Olefins Transformation: When Market Pressure Translates into Operational Decision-Making

This issue’s content is slightly longer. Let’s start with a key assessment: Over the next three to five years, the global olefins market will face increasingly severe challenges—most likely undergoing a triple restructuring involving capacity, rules, and decision-making. This statement is not made lightly. Consider two events that occurred in late October 2026: On October 30, LyondellBasell released its Q3 earnings before market open, reporting EBITDA of USD 1.42 billion. Its financial report explicitly noted declining profits in the olefins and polyolefins Americas segment—primarily due to the retreat of price surges triggered earlier in Q2 by Middle East conflicts. Almost simultaneously, two Thai-listed chemical companies—SCG Chemicals (SCGC) and PTT Global Chemical (GC)—announced in Bangkok that they had reached agreement on core terms for merging their olefins and polyolefins businesses in Thailand. This was no spur-of-the-moment move: the two parties had already signed a non-binding memorandum of understanding back in April and May this year. One side records falling prices directly in its profit-and-loss statement; the other responds to cyclical pressure through consolidation and collaboration—this is the very essence of the ongoing transformation. I. Understanding External Variables: Three Causal Chains To deeply grasp the changes unfolding in the olefins market, knowing only these two events is insufficient—we must analyze them through three causal chains. First chain: China’s capacity rollout remains incomplete, and structural oversupply has become inevitable. In 2025, China’s new ethylene capacity additions approach 9 million tons—nearly double the average annual increment of 4.85 million tons between 2020 and 2024. According to industry data, another 13 plants—totaling approximately 8.52 million tons—are scheduled to commence operations in 2026 (planned basis; delays for large-scale facilities are common). By year-end, total Chinese ethylene capacity is expected to exceed 70 million tons—accounting for roughly 30% of global capacity. On the demand side: China’s ethylene consumption reached 68.51 million tons in 2025 (a 7% increase), and is projected to reach 71 million tons in 2026—a growth rate of under 4%. That implies less than 3 million tons of incremental demand—far short of the 8.52 million tons of new capacity coming online. This real supply–demand ‘scissors gap’ is undeniable. Regarding operating rates: Overall utilization hovers around 80%, but significant divergence exists. MTO (methanol-to-olefins) units relying on externally purchased methanol operate persistently at low loads—or even shut down entirely—while CTO (coal-to-olefins) units backed by captive coal mines and ethane-cracking units using imported ethane maintain relatively high utilization. Note that CTO and MTO are often collectively labeled “coal-based olefins,” yet their cost positions are opposite: current full-cost rankings run roughly as follows—naphtha > externally purchased methanol-based MTO > propane cracking > CTO > ethane cracking. As ‘anti-overcapacity’ policies intensify, policy intervention is increasingly supplementing market forces to accelerate the exit of high-cost facilities. Second chain: Europe’s high-cost capacity is also being rapidly phased out. Over 70% of European ethylene production relies on naphtha feedstock. With natural gas prices consistently several times higher than those in the U.S., the cash cost of naphtha-based routes exceeds U.S. levels by hundreds of dollars per ton—even before adding carbon costs—making operations increasingly untenable. By end-2024, overall operating rates had fallen to ~75%, a historic low. Since April 2024, seven steam cracker units have announced permanent shutdowns—or plans to close by 2027—representing ~4.3–4.5 million tons/year of ethylene capacity removal, or about 20% of the EU’s total ethylene capacity (~24.5 million tons). Third chain: Europe is shifting gears—redirecting competition toward recycled feedstocks.

SCGC Targets Q2 2027 Restart for Vietnam Petrochemical Complex

3 hours ago

SCGC Chemicals expects to resume operations at its Vietnam petrochemical complex by Q2 2027, cutting annual costs by over $250 million. The company is adjusting production amid market uncertainties while pursuing strategic investments.

chemweek

SCGC Targets Q2 2027 Restart for Vietnam Petrochemical Complex

FAQ