chemone

ChemOne announces US$3.38bil petrochemicals hub in Johor

ChemOne Group, an oil and gas, petrochemicals and natural resources conglomerate, has announced the launch of the US$3.38bil Pengerang Energy Complex (PEC) in Johor.

Construction of the facility is scheduled to start in the second half of 2020.

According to a statement by ChemOne, it will be the master developer and majority shareholder of the PEC, which aims to be a world-class petrochemical hub that will add value to the downstream oil and gas value chain in Malaysia.

Upon completion, the project will be one of the world’s largest integrated condensate splitter and aromatics facilities.

“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,” said ChemOne.

The PEC will have a processing capacity of 150,000 barrels per day of condensate plus side feed of naphtha, an aromatics output of 2.3 million metric tons per annum; 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.

Over four years of construction, the PEC will hire over 7,000 employees.

It will employ 250 staff once it commences operations, of which 80% will be Malaysian.

ChemOne said the project will employ various external contractions, service providers and SMEs.

“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,” it said.

It is expected to reach full capacity by 2024, and generate an annual export turnover of US$5bil for Malaysia.

Maire Tecnimont of Italy is ChemOne’s engineering, procurement, construction and commissioning (EPCC) partner for the project while UOP is the technology provider for PEC.

Add a Comment

Your email address will not be published. Required fields are marked *