Page 9 - AsianOil Week 25 2022

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Financial close nears for

Malaysia’s Pengerang complex

PROJECTS & SINGAPORE-BASED ChemOne Group has fuels and downstream petrochemicals prod-
COMPANIES announced that the Pengerang Energy Complex ucts, growth is projected to continue to outpace
(PEC) in Malaysia is nearing financial close for capacity,” ChemOne Chairman and CEO M Y
at least $2.4bn in export guarantees that will be Ling said. “Through PEC, ChemOne aims to
used to support the project. Construction of the create a sustainable and energy-efficient state-
$4.4bn facility is due to begin at the end of this of-the-art aromatics complex within Southeast
year, the conglomerate said. Asia to serve the wider Asian market,” he added.
ChemOne Group is the master developer of PEC is scheduled to be fully operational by
PEC, with which the company intends to create 2026 with a capacity to process 150,000 barrels
a sustainable and energy-efficient aromatics per day (bpd) of condensate plus a side feed of
complex that will supply the entire region. PEC naphtha that will produce 2.3mn tonnes per year
is within the Malaysia federal and Johor state (tpy) of aromatics. The facility will also produce
government-sponsored Pengerang Integrated 3.9mn tpy of energy products and 50,000 tpy of
Petroleum Complex (PIPC), the location of hydrogen. The condensate splitter will produce
which gives it access to core international feed- heavy naphtha, a primary feedstock for the aro-
stock sources and from where it can supply key matics plant, while the hydrogen produced will
product demand centres in Asia, a statement go to develop downstream renewable fuels facil-
released by ChemOne said. It added that PEC ities in Johor.
had secured long-term offtake commitments PEC anticipates annual export turnover of
from blue-chip energy players in the industry $5bn, which would propel Malaysia further up
for all its products. the value chain in the petrochemical sector.
The company said that senior debt financing It plans to receive long-term feedstock sup-
for the project would be launched into syndica- plies from major international oil companies
tion during June 2022 and could reach $2.9bn. (IOCs), while leading European, American,
Financial close should be concluded within six Japanese, Chinese and Thai petrochemical
weeks, it said. firms have committed to offtake the products,
“As Asia drives strong regional demand for ChemOne said.™

ExxonMobil upgrading petchem complex

PROJECTS & EXXONMOBIL said this week that it expects to customers to blend a wide range of high-viscos-
COMPANIES add around 20,000 barrels per day (bpd) of light, ity finished lubricants where traditional Group I
heavy and extra-heavy lubricant base stocks by base stock use is limited.
upgrading its Singapore integrated refining and “We will produce EHC 340 MAX using pro-
petrochemical complex. prietary technologies that allow us to manufac-
The super-major is working to complete the ture a product with performance attributes that
Singapore Resid Upgrade Project by 2025. The differentiate it from other high-viscosity base
project comes as demand for cleaner fuels and stocks,” stated ExxonMobil’s vice president of
lubricants for engines rises. base stocks and waxes, Todd Sepulveda.
ExxonMobil said the Singapore Resid The Singapore Resid Upgrade Project will
Upgrade Project would expand large-scale pro- also enable the refinery to increase produc-
duction of its global EHC Group II slate to meet tion of cleaner fuels, including marine fuels for
growing demand for high-performance lubri- customers to meet the International Maritime
cants in the Asia-Pacific region. The project is Organization’s (IMO) 0.50% sulphur require-
expected to add supplies of EHC 50 and EHC ment, ExxonMobil said. These include ultra-low
120 grades to the market, and up to 6,000 bpd sulphur diesel and products that can be further
of extra-heavy base stocks, including the new blended to meet shipping emission requirements.
Group II base stock, EHC 340 MAX. ExxonMobil’s Singapore refinery produces a
The super-major added that the EHC 340 variety of fuels and base stocks for industrial and
MAX base stock complements the viscosity automotive lubricants, as well as aromatics that
range of the existing EHC slate as it is compara- are marketed within Singapore and exported to
ble in viscosity to Group I bright stock but allows other countries in the Asia-Pacific region.™

Week 25 24•June•2022 www. NEWSBASE .com P9