ChemOne Group, an oil and gas, petrochemicals and natural resources conglomerate has announced the launch of the Pengerang Energy Complex (“PEC”) in Johor, Malaysia.
The US$3.38 billion project will be one of the world’s largest and most competitive integrated Condensate Splitter and Aromatics facilities. Construction is expected to start in the second half of 2020.
PEC aims to become a world class petrochemical hub that will add value to the downstream oil and gas value chain in Malaysia. This is in line with the Government’s Transformation Programme to increase Malaysia’s petrochemical output and establish it as a regional oil storage and trading hub.
At full capacity, expected from 2024, PEC is expected to generate an annual export turnover of US$5 billion for Malaysia. PEC will have a processing capacity of 150,000 barrels per day (“bpd”) of Condensate plus side feed of Naphtha, an Aromatics output of 2.3 million metric tons per annum (“mtpa”); energy products output of 3.9 million mtpa and hydrogen of 50,000 mtpa. The Condensate Splitter will produce heavy Aromatics Naphtha, a primary feedstock for the Aromatics plant.
During its four-year construction phase, PEC will hire over 7,000 employees. Overall, PEC is estimated to require the use of US$600-750 million worth of Malaysian-made content and catalyse additional investments of US$500-600 million for associated infrastructure, storage and other facilities.
Mr. Edwin Seow, Principal in the Chairman’s Office, ChemOne, said, “ChemOne is excited to announce this ground-breaking project and intend to deliver a successful project given its track record and the strong support it enjoys from stakeholders who share similar ambitions and expertise. With the petrochemical market set to pick up further, PEC is poised to deliver profitable growth while creating gainful local employment and moving Malaysia further up the value chain in the petrochemical sector.”
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