The US$ 4.5 billion PEC facility is set to be one of the largest and most competitive as well as energy and resource efficient aromatics complexes in the world
Credit: PEC - An illustration of PEC’s four blue-chip partners: Chevron, Equinor, PTT, Mitsui & Co., Ltd and the project developer ChemOne.
Pengerang Energy Complex announced that it has signed key agreements with several blue-chip partners for the upcoming Pengerang Energy Complex (PEC), located within the dedicated Pengerang Integrated Petroleum Complex (PIPC) in Johor, Malaysia.
The strategic feedstock supply and product off-take agreement signings with leading energy majors Chevron and Equinor, Thai national oil company PTT, and marquee trading house Mitsui & Co. are worth a combined total of US$ 102 billion and together will support the full needs of PEC for its initial twelve years of operation.
Alwyn Bowden, CEO of Pengerang Energy Complex, said: “when it enters into operation in late 2026 the PEC Project will deliver the lowest carbon footprint per tonne of Paraxylene produced of any such facility globally, thereby delivering Industry pacesetting benchmarks, and allowing PEC to ‘start with the future’. It is against this background that we are especially pleased to successfully conclude negotiations on feedstock supply and off-take with our like-minded and forward-thinking partners, who together will form the cornerstone of PEC operations. These key agreement signings also signal the strong confidence that our various stakeholders have in the project and are set to be a catalyst for further exciting announcements and progress updates in the coming months.”
PEC forecasts an annual export turnover of US$ 5 billion, propelling Malaysia further up the value chain in the petrochemical sector. With strong regional demand for fuels and downstream petrochemicals products, PEC’s hydrogen output holds potential for further downstream investments which will enable green initiatives such as Sustainable Aviation Fuels (SAF), Biodiesel and other Biofuels.
PEC, which is being developed by ChemOne Group, a leading energy and petrochemicals project developer based in Singapore, along with its strategic partners, has been designed to optimize energy efficiency, minimize equipment requirements, and significantly reduce carbon footprint and has been developed in line with International Financial Corporation’s (IFC) performance standards and Equator Principles 4. Once completed, the US$ 4.5 billion (approximately SGD 6 billion / MYR 19.8 billion) PEC facility is set to be one of the largest and most competitive as well as energy and resource efficient Aromatics Complexes in the world.
Financing of PEC is expected to be concluded within the next quarter as per financing terms and schedule agreed with leading Global export credit agencies (ECAs), with export guarantee facilities of around US$ 2.5 billion anticipated to be available to support the project.
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