ChemOne Launches Malaysian Aromatics Project
Singapore’s ChemOne Group has launched a major aromatics project to be built in Johor, Malaysia. Known as the Pengerang Energy Complex (PEC), the $3.38 billion project will process 150,000 bpd of condensate, which will provide naphtha feedstock to produce 2.3 million t/y of aromatics, namely paraxylene and benzene, as well as 3.7 million t/y of oil products, including light naphtha, diesel and jet fuel.
Construction is expected to start in the second half of 2020 with the plant online and reaching full capacity from 2024. UOP is providing technology and Italian contractor Maire Tecnimont is responsible for engineering, procurement, construction and commissioning.
ChemOne said the complex will be one of the world’s largest and most competitive integrated condensate splitter and aromatics facilities. Its location is adjacent to the site of the Petronas/Saudi Aramco Refinery and Petrochemical Integrated Development (RAPID) project. PEC said its aromatics project offers many opportunities for synergies with RAPID and other potential future investments at Pengerang and throughout Malaysia and Southeast Asia.
Feedstock and offtake commitments have been secured on a take or pay basis. The target market for the aromatics output is initially China, where demand growth continues to outstrip planned capacity additions.
Once the complex begins operations, it will employ 250 staff. PEC said from start-up, it expects to general an annual export turnover of $5 billion for Malaysia. The company added that it aims to become a world-class petrochemical hub, which will add value to Malaysia’s downstream oil and gas chain. This is in line with the Malaysian government's transformation program to increase the country’s petrochemical output and establish itself as a regional oil storage and trading hub.
“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," said Edwin Seow, principal in the chairman's office, ChemOne.
Project developer ChemOne, which is PEC’s majority shareholder, also conceived, developed and arranged finance for the Jurong Aromatics Complex in Singapore.
