The Pengerang Energy Complex (PEC) will be one of the world’s largest and most competitive integrated condensate splitter and aromatics facilities.
Construction was expected to start in the second half of 2020, the company said in a statement today.
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 US$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 US$600 million to US$750 million worth of Malaysian-made content and catalyse additional investments of US$500 million to US$600 million for associated infrastructure, storage and other facilities.
PEC will have a processing capacity of 150,000 barrels per day (bpd) of condensate plus side feed of naphtha, an aromatics output of 2.3 million tonnes per annum (mtpa); 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.
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.