Malaysia’s PEC eyes final investment decision for Johor complex in H2 – CEO

SINGAPORE (ICIS)–Malaysia’s Pengerang Electricity
Advanced Sdn Bhd (PEC) expects to make a last
investment decision (FID) on its $4.5bn
petrochemical challenge in Johor in the second
50 percent of the calendar year, when challenge funding is
anticipated to be finalised, its CEO Alwyn Bowden
told ICIS on Friday.

“Equity portion is led by ChemOne Group together
with its strategic associates,” Bowden said in an
e-mailed response to ICIS queries.

ChemOne is a Singapore-centered petrochemicals,
environmentally friendly strength and pure assets
conglomerate. It had made and arranged
funding for Singapore’s Jurong Aromatics
Intricate, whose plant begun up in 2014 and was
sooner or later obtained by US electricity
big ExxonMobil in 2017.

PEC is ChemOne’s enterprise unit that will
operate and control the proposed petrochemical
complicated in Johor.

“The fairness funding breakdown for the undertaking
will be disclosed upon money expense
conclusion (FID) in 2nd half of 2023,” Bowden
mentioned.

“The credit card debt funding for the challenge launched
into syndication in 2022 and the FID of the PEC
is envisioned to conclude in just this year as for every
financing conditions and timetable agreed with
major Global Export Credit rating Organizations (ECAs),
with export assure services near to $3bn
to be available to aid the venture,” the
PEC chief mentioned.

The PEC task will be capable of processing
150,000 bbl/working day of condensate, which will, in
switch, deliver 2.3m tonnes/year of aromatics,
3.9m tonnes/year of vitality goods and 50,000
tonnes/year of hydrogen.

“Engineering performs for the Pengerang Strength
Complicated (PEC) is at this time underway and the
task is slated to be thoroughly operational by
late 2026,” Bowden reported.

The task is predicted to deliver close to
2m
tonnes/year of paraxylene (PX), whose principal
downstream field is textiles.

“From 2026, there will be a ton of traditional
downstream ability which will involve
paraxylene and there is also an inflection
point predicted for China’s import
specifications,” Bowden said.

The undertaking first introduced in early
2020 was delayed from its authentic start out-up
timeline of Q4 2022, and the expense has gone up
from the original estimate of $3.4bn.

“During the project finance phase, the world
has knowledgeable report oil selling price fluctuations,
a worldwide pandemic and geopolitical conflict.
Just about every 1 of these activities has needed PEC to
re-analyse the task completely to assure the
job is structured in a way that can
stand up to this sort of functions and continue to be successful at
every single amount,” Bowden explained.

“Despite these situations generating obstructions and
leading to delays, it has assisted the PEC to
futureproof the profitability of the job,”
he additional.

Job interview write-up by Pearl
Bantillo

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