ChemOne secures USD 500m for Pengerang Energy Complex in Malaysia

Singapore-based ChemOne Group has secured USD 500 million (EUR 447.9m) from banks and financial institutions in the Middle East for the Pengerang Energy Complex (PEC) which is being developed in Malaysia and touted as one of the largest low-carbon integrated condensate splitter and aromatics facilities in the world.

To be located within the Pengerang Integrated Petroleum Complex (PIPC) in Johor, the USD-5-billion-plus facility will be capable of processing 150,000 barrels per day (bpd) of condensate plus side feed of naphtha that, in turn, will produce 2.3 million metric tonnes per annum (mmtpa) of aromatics.

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The complex will have an energy products output of 3.9 mmtpa and a hydrogen output of 50,000 mmtpa. The hydrogen is planned to be used to support the development of downstream renewable fuel facilities in Johor.

PEC already has USD 102 billion of long-term feedstock supply and product off-take agreements in place with companies such as Chevron and Equinor, Thai national oil company PTT and Japanese trading house Mitsui & Co.

ChemOne will develop, build and operate the site. Italy’s Maire Tecnimont has been selected as the engineering, procurement, construction and commissioning (EPCC) partner, while Honeywell UOP will be providing advanced reforming and aromatics technologies.

The Islamic Finance Tranche is led by Al Rajhi Bank in Saudi Arabia with participation from the Islamic Development Bank (IsDB) and two of its key subsidiaries. The debt financing is anchored by international Export Credit Agencies (ECA), amounting to USD 3.5 billion, which along with the Islamic finance tranche, completes the senior debt structure of PEC, a recent statement said.

(USD 1 = EUR 0.896)