Page 13 - AsiaElec Week 25 2022

AsiaElec FUELS AsiaElec

Financial close nears for

Malaysia’s Pengerang Complex

with start-up planned for 4Q22

MALAYSIA SINGAPORE-BASED ChemOne Group has fuels and downstream petrochemicals prod-
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 $2.4 billion in export guarantees that will Ling said. “Through PEC, ChemOne aims to
be used to support the project. Construction of create a sustainable and energy efficient state-of-
the $4.4 billion facility is due to begin at the end the-art aromatics complex within Southeast Asia
of this year, the conglomerate said. 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 b/d of
a sustainable and energy-efficient aromatics condensate plus a side feed of naphtha that will
complex that will supply the entire region. PEC produce 2.3 million tons annually of aromatics.
is within the Malaysia Federal and Johor State The facility will also produce 3.9 million tons
Government-sponsored Pengerang Integrated per year of energy products and 50,000 tons 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 centers 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 expects annual export turnover of $5 bil-
from blue-chip energy players in the industry lion, which would propel Malaysia further up the
for all its products. value chain in the petrochemical sector. It plans
The company said that senior debt financing to receive long-term feedstock supplies from
for the project would be launched into syndica- major international oil companies, while lead-
tion during June 2022 and could reach $2.9 bil- ing European, American, Japanese, Chinese and
lion. Financial close should be concluded within Thai petrochemical industry firms have commit-
six weeks, it said. ted to offtake the products, ChemOne said.™
“As Asia drives strong regional demand for

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