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15. February 2020

MALAYSIA: ChemOne to build USD 3.4 billion aromatics plant in Johor

Singapore-based ChemOne Group will undertake a USD 3.38 billion project in Johor. The Pengerang Energy Complex (PEC) will be one of the world’s largest and most competitive integrated condensate splitter and aromatics facilities. Construction is expected to start in the second half of 2020, the company said in a statement on 5 February 2020. 

ChemOne said the group was the master developer and majority shareholder through its sponsorship in PEC. Maire Tecnimont of Italy is ChemOne’s engineering, procurement, construction and commissioning (EPCC) partner for the project, and UOP is the technology provider for PEC. ChemOne said PEC aimed to become a world class petrochemical hub that will add value to the downstream oil and gas value chain in Malaysia. This was 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.

At full capacity, expected from 2024, PEC is expected to generate an annual export turnover of USD 5 billion for Malaysia. During its four-year construction phase, PEC will hire over 7,000 employees. Once it begins operations, it will employ 250 staff, of which 80 per cent will be Malaysians. ChemOne said the project would also employ various external contractors, service providers and small and medium enterprises (SMEs). It said overall, PEC was estimated to require the use of USD 600 million to USD 750 million worth of Malaysian-made content and catalyze additional investments of USD 500 million to USD 600 million for associated infrastructure, storage and other facilities.

PEC will have a processing capacity of 150,000 barrels per day (b/d) of condensate plus side feed of naphtha, an aromatics output of 2.3 million t/y; energy products output of 3.9 million t/y and hydrogen of 50,000 t/y. The condensate splitter will produce heavy aromatics naphtha, a primary feedstock for the aromatics plant. ChemOne principal in the chairman’s office Edwin Seow said the group was excited to announce the ground-breaking project. “With the petrochemical market set to pick up further, PEC is poised to deliver profitable growth while creating gainful local employment and moving Malaysia further up the value chain in the petrochemical sector,” he added.

Source: Daily “The New Straits Times”, Kuala Lumpur; 5 Feb 2020
(Syed Rashid Ali, Karachi, Pakistan)

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