SINGAPORE (ICIS)--Singapore-based ChemOne Group on Monday said that it expects to start construction of its $4.4bn 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 PEC will be capable of processing 150,000 bbl/day of condensate plus side feed of naphtha, that will in turn produce 2.3m tonnes/year of aromatics, 3.9m tonnes/year of energy products and 50,000 tonnes/year of hydrogen.
"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 about $2.9bn, 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 forecasts an annual export turnover of $5bn and is planning 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, the company said.
"PEC has already secured long-term offtake commitments from blue-chip energy players in the industry for all its products," it added.
Photo thumbnail: Solid Product Jetty at PETRONAS' Pengerang Integrated Complex (PIC) sited within the larger Pengerang Integrated Petroleum Complex (PIPC). (Source: PETRONAS official website)