MOSCOW (MRC) -- Pengerang Energy Complex Sdn Bhd 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, said Hydrocarbonengineering.
The strategic feedstock supply and product off-take agreement signings with leading energy majors Chevron and Equinor, Thai national oil company PTT, and trading house Mitsui & Co. Ltd are worth a combined total of USD102 billion and together will support the full needs of PEC for its initial 12 years of operation.
Alwyn Bowden, CEO of Pengerang Energy Complex Sdn Bhd, 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 USD5 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, along with its strategic partners, has been designed to optimise energy efficiency, minimise equipment requirements, and significantly reduce carbon footprint and has been developed in line with International Financial Corp.'s (IFC) performance standards and Equator Principles 4. Once completed, the US$4.5 billion (approximately SG$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 USD2.5 billion anticipated to be available to support the project.
We remind, LyondellBasell announced that PetroChina Jilin Petrochemical Company will again license LyondellBasell’s polyethylene technology at their facility located in Jilin City, Jilin Province, P.R. of China. The newly licensed technology will comprise of LyondellBasell’s leading high-pressure Lupotech process technology which will be used for both a 100 kiloton per year (KTA) Autoclave and a 300 KTA Tubular line. Both production trains will produce mainly low-density polyethylene (LDPE) with ethylene vinyl acetate copolymers (EVA). Furthermore, an additional 400 KTA Hostalen “Advanced Cascade Process” (ACP) line for the production of high density polyethylene (HDPE) will be built at the same time.