Malaysia’s Pengerang Energy Complex Signs Deals Worth USD 102 Billion with Blue Chip Partners

April 2023

Pengerang Energy Complex Sdn Bhd recently signed key agreements with several blue-chip partners for the upcoming Pengerang Energy Complex (PEC) at Pengerang Integrated Petroleum Complex (PIPC) in Johor, Malaysia. The PEC facility is expected to be one of the biggest and most competitive energy and resource efficient aromatics complexes in the world.

The agreements were signed with leading energy majors Chevron and Equinor, Thai national oil company PTT, and trading house Mitsui & Co. Ltd to support the full needs of PEC for the first 12 years of operation. The strategic arrangement for feedstock supply and product off-take is valued a total of USD 102 billion (MYR 457.5 billion). 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 tons per annum (mtpa). Energy products output will be of 3.9 million mtpa and hydrogen of 50,000 mtpa.

PEC, which is being constructed by Singapore-based energy and petrochemicals project developer ChemOne Group, along with its strategic partners, has been designed to optimize energy efficiency, minimize equipment requirements, and reduce carbon footprint and has been developed in line with International Financial Corp (IFC) performance standards and Equator Principles 4. The CEO of Pengerang Energy Complex Sdn Bhd Alwyn Bowden stated that the PEC project will deliver the lowest carbon footprint per ton of paraxylene produced of any such facility globally when it enters operation in late 2026. PEC forecasts an annual export turnover of USD 5 billion, propelling Malaysia further up the value chain in the petrochemical sector.

(Sources: Hydrocarbon Engineering; The Edge Markets; New Straits Times)

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