ChemOne Group announced that it expects to start construction of its $4.4 billion Pengerang Energy Complex (PEC) in Malaysia in the fourth quarter of 2022.
The new complex at the Pengerang Integrated Petroleum Complex (PIPC) in southern Johor is expected to be operational in 2026, the company said in a statement.
The project will be capable of processing 150,000 barrels per day (bpd) of condensate plus a side-feed of naphtha, which will, in turn, produce aromatics of 2.3 million metric tonnes per annum (mmtpa), energy products output of 3.9 mmtpa and hydrogen output of 50,000 metric tonnes per annum (mtpa).
“The condensate splitter will produce heavy naphtha, a primary feedstock for the aromatics plant, and hydrogen produced is planned to be used to develop downstream renewable fuels facilities in Johor,” ChemOne said.
The PEC is on track to complete its financial closing in late 2022 and the company has awarded Honeywell UOP the technology licensing contract for the project, the company said in statement.
The senior debt financing for the project, estimated to be approximately $2.9 billion, has also been launched into syndication this month and is expected to be concluded within six weeks, it said.
PEC is also on track to conclude several key agreements with industrial partners that are participating in the project, along with joint venture and engineering, procurement, construction and commissioning partner, Maire
Tecnimont.
“The deals that have been inked thus far highlight our stakeholder’s strong confidence in the project. Within the next couple of months, we expect to conclude negotiations and sign agreements with leading global energy companies and oil majors for feedstock and offtake,” said Alwyn Bowden, the CEO of Pengerang Energy Complex.
PEC expects an annual export turnover of $5 billion, propelling Malaysia further up the value chain in the petrochemical sector.
It is planned to receive its long-term feedstock supplies from major international oil companies, while leading European, American, Japanese, Chinese and Thai petrochemical players have committed to off-take the products.
“PEC has already secured long-term offtake commitments from blue-chip energy players in the industry for all its products,” it added.