Singapore's ChemOne delays Pengerang complex's start to 2028

Singapore's ChemOne Group has delayed the start of its Pengerang Energy Complex (PEC) to the fourth quarter of 2028, with construction set to begin by mid-2025, it said on Monday, after securing more financing for the project, as per Hydrocarbonprocessing.

The project has secured an agreement for $3.5 billion of financing, the company said. "As the petrochemicals industry is set to grow exponentially, alongside rapid economic development across East Asia and Southeast Asia, the PEC project is poised to form a key driver of demand for quality aromatics in the medium to long term," Alwyn Bowden, PEC's chief executive, said.

The $5 billion project's start has been delayed multiple times in the past few years after it was first announced in 2020.

"The PEC project has faced many challenges on its path to fruition, including living through the COVID restrictions and the various geopolitical impacts of both the Ukraine war and the more recent conflicts in the Middle East, all of which have conspired in creating a complex financing environment for all projects," Bowden said.

The "complexity working with five export credit agencies as well as three Islamic entities" also resulted in a "degree of unpredictability" and timeline adjustments of the project, he added.

Earlier this year, ChemOne Group awarded the operations and maintenance contract for the PEC site to a subsidiary of GS Engineering & Construction Corp.

When completed, the site is expected to house a petrochemical facility that can produce up to 2.6 MMtpy of products such as paraxylene, a feedstock for synthetic fibers and plastic bottles, and 3 MMtpy of fuel products including jet fuel.

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The European Union has extended the permit for Croatia to receive vacuum gas oil from Russia until the end of 2025 and for the Czech Republic to continue receiving petroleum products produced from Russian oil delivered via pipelines until June 5, 2025, the EU said in its 15th package of sanctions, as per Interfax.

The current permit for Croatia expires at the end of 2024, and the permit for the Czech Republic was valid until December 5, 2024.

We remind, the European Union has extended the possibility to exclude gas pipelines from Russia to third countries from the technological sanctions until the end of 2025, the EU said in its updated sanctions list. The updated sanctions document describes the possibility, upon the decision of the responsible authorities, to supply equipment and technologies if they are necessary to operate the gas pipeline infrastructure between Russia and third countries.

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MAIRE has announced that NEXTCHEM (Sustainable Technology Solutions), through its subsidiary MyRemono, has signed a toll manufacturing agreement with Rohm under which Rohm will supply PMMA scrap material feedstock to be processed and chemically transformed by MyRemono into ultra-pure monomers with virgin-like quality, as per Hydrocarbonprocessing.

This initiative leverages on NEXTCHEM's proprietary NXRe™ technology, an advanced and efficient molten metal depolymerization process for the continuous chemical recycling of PMMA. Rohm will also act as the off taker of recycled methyl methacrylate monomer (rMMA), to be reused for the manufacturing of new PMMA products in a fully circular process. The agreement provides for a processing fee to be paid by Rohm to MyRemono.

The initiative follows the establishment of a Europe-wide circularity network for the recycling of PMMA, which includes MyRemono, Rohm, Pekutherm and Polyvantis. Pekutherm will manage the logistics and sorting of PMMA materials, while Polyvantis will handle the mechanical recycling.

MyRemono will manage the chemical recycling of PMMA scrap material at its first-of-its-kind industrial-scale plant, currently being developed in Italy, with the support of the EU Innovation Fund. The plant is expected to be completed in 2026 with an initial processing capacity of about 5,000 tpy of PMMA, an amount needed to produce approximately 10 MM car taillights, demonstrating how significant volumes of recycled material can replace virgin resources in manufacturing.

Compared to the current virgin MMA production routes, the recycled MMA produced via NXRe™ PMMA TECHNOLOGY is expected to feature a carbon footprint reduction of more than 90%. MyRemono’s overall investment for the technology development and scale-up, as well as for the construction of the first industrial-scale plant, amounts to €15 MM, mainly funded by a bank loan and the €4-MM EU Innovation Fund grant.

With this agreement NEXTCHEM sets the base for the licensing of its NXRe™ PMMA technology, a key milestone for the future development of chemical depolymerization of other value-added materials, such as polystyrene and polyolefins.

Alessandro Bernini, MAIRE CEO, commented: “Our NXRe™ PMMA technology will play a key role in advancing circularity, serving as one of the core pillars of our value proposition for circular solutions and sustainable materials. The implementation of this world-first advanced recycling plant, and the creation of this industrial consortium are a clear example of the relevance and validity of how disruptive technologies respond to current challenges.”

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Phillips 66 announced a 2025 capital budget of $2.1 billion, including $998 million for sustaining capital and $1.1 billion for growth capital, as per Hydrocarbonprocessing.

“We continue to demonstrate capital discipline, aligning our investments with our strategic priorities,” said Mark Lashier, chairman and CEO of Phillips 66. “The budget underscores our dedication to delivering value to shareholders by funding growth in the NGL wellhead-to-market value chain and further enhancing refining competitiveness.”

In Midstream, the capital budget of $975 million comprises $429 million for sustaining projects and $546 million for growth projects. The budget advances the integrated NGL wellhead-to-market value chain by strengthening the company’s position in key basins, including increasing gas processing capacity.

In Refining, Phillips 66 plans to invest $822 million, including $414 million for sustaining capital. Refining growth capital of $408 million supports the company’s commitment to high-return, low-capital projects.

The Marketing and Specialties capital budget reflects the continued enhancement of the company’s branded network.

The Renewable Fuels capital budget reflects investments at the Rodeo Renewable Energy Complex toward the optimization of feedstocks and logistics for renewable diesel and sustainable aviation fuel production.

Corporate and Other capital will primarily fund information technology projects.

Phillips 66’s proportionate share of capital spending by joint ventures Chevron Phillips Chemical Company LLC (CPChem) and WRB Refining LP (WRB) is expected to total $877 million and be self-funded.

CPChem’s growth capital will continue to fund the construction of world-scale petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar, through joint ventures. The facilities are expected to start up in 2026.

WRB’s capital spending will primarily be directed to sustaining projects. Including Phillips 66’s proportionate share of capital spending associated with joint ventures CPChem and WRB, the company’s total 2025 capital program is projected to be $3 billion.

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The European Union has extended the possibility to exclude gas pipelines from Russia to third countries from the technological sanctions until the end of 2025, the EU said in its updated sanctions list, as per Interfax.

The updated sanctions document describes the possibility, upon the decision of the responsible authorities, to supply equipment and technologies if they are necessary to operate the gas pipeline infrastructure between Russia and third countries.

The permit process also allows these transactions in order to exit joint ventures with Russian partners if the JVs were established before February 24, 2022.

PJSC Gazprom is the owner and operator of the Unified Gas Supply System that ensures the continuous cycle of gas supplies to consumers in the Russian Federation and for export.

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