Sector News

ChemOne to build world-scale aromatics complex in Johor, Malaysia

February 6, 2020
Chemical Value Chain

ChemOne Group (Singapore), an oil and gas, petrochemicals, and natural resources conglomerate, today announced the launch of the $3.38-billion Pengerang Energy Complex (PEC) in the state of Johor, Malaysia.

ChemOne said construction of the project, which it says will be one of the world’s largest and most competitive integrated condensate splitters and aromatics production facilities, will start in the second half of 2020 with completion due four years later.

ChemOne is the master developer and majority shareholder through its sponsorship in PEC. Maire Tecnimont is ChemOne’s engineering, procurement, construction, and commissioning partner for the project, and UOP is the technology provider for PEC. The project is in line with the government’s transformation program to increase Malaysia’s petrochemical output and establish it as a regional trading hub. At full capacity, expected from 2024, PEC is expected to generate an annual export revenue of $5 billion for Malaysia. It is expected to serve the Asian markets.

PEC will have a processing capacity of 150,000 b/d of condensate and side feed of naphtha; an aromatics capacity of 2.3 million metric tons/year (MMt/y); oil products output of 3.9 MMt/y; and hydrogen of 50,000 metric tons/year. The condensate splitter will produce heavy aromatics naphtha, a primary feedstock for the aromatics plant. The second phase of the development envisages a 300,000 b/d refinery complex to serve regional demand, and with back-integrated supply chain to the aromatics complex.

Edwin Seow, a principal at ChemOne, said, “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.”

ChemOne was one of the developers of the Jurong aromatics complex in Singapore, now owned by ExxonMobil. A major refinery and petrochemical project is already nearing completion in Johor. Both are being built by a joint venture of Petronas (Kuala Lumpur) and Saudi Aramco.

By Natasha Alperowicz

Source: Chemical Week

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