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Proposed PEC location

Overview

The Pengerang Energy Complex (PEC) is a world-scale, integrated condensate splitter and aromatics facility, strategically located in the Pengerang Industrial Park within the Pengerang Integrated Petroleum Complex (PIPC), Johor, Malaysia. The complex is developed by Pengerang Energy Complex Sdn. Bhd. (PEC), with ChemOne Group (Singapore) as its principal shareholder and master developer.

• Total Investment: USD 5.3 billion
• Land Area: 250 acres
• Strategic Connectivity: Proximate to the Pengerang Deepwater Terminal, enabling efficient import/export logistics with direct global shipping access.

Core Activities and Project Scope

Primary Project Facilities

• Condensate Splitter:
  • Capacity: 150,000 barrels per day (bpd) of condensate plus additional naphtha.
  • Main function: Separate condensate (a light hydrocarbon) into various product fractions and provide heavy naphtha for downstream use.
• Aromatics Plant:
  • Capacity: 2.3–2.6 million metric tonnes per annum (mtpa) of aromatics, including about 1.5 mtpa of paraxylene and 656,000 tonnes of benzene.
  • Utilizes advanced Honeywell UOP LD Parex™ technology for improved energy efficiency and product yield.
• Hydrogen Recovery Unit:
  • Production: 50,000 tonnes per year of hydrogen, envisioned for both internal consumption and as feedstock for future green projects (e.g., sustainable aviation fuel and hydrogenated vegetable oil plants).

Primary Outputs

• Annual Product Capacities:
  • Paraxylene: ~1,505,000 tonnes
  • Benzene: ~656,000 tonnes
  • Hydrogen: 50,000 tonnes
  • Jet Fuel: ~926,000 tonnes
  • Light Naphtha: ~887,000 tonnes
  • Ultra-low Sulfur Diesel: ~1,396,000 tonnes
  • LPG: ~298,000 tonnes
  • Low-sulfur Fuel Oil: ~154,000 tonnes

Key Activities

• Project Financing & Partnerships:
  • Secured ~$3.5 billion in financing from leading export credit agencies and the Islamic Development Bank.
  • Entered long-term feedstock agreements (~$102 billion) with Chevron, Equinor, PTT, Mitsui—supporting 12 years’ operations and full product offtake.
• Process Integration and Efficiency:
  • Aromatics unit maximizes yield with nearly 10% higher conversion efficiency, reducing off-gases and overall carbon footprint.
  • Energy integration across process streams minimizes power usage and operational emissions.
• Environmental and Social Management:
  • Designed and implemented in accordance with International Finance Corporation (IFC) performance standards and Equator Principles.
  • Extensive environmental and social management plans, including health impact assessments for local communities.
• Export and Regional Supply:
  • Site integration with the Pengerang Deepwater Terminal supports efficient global exports.
  • Project is geared to support Southeast Asia’s growing demand for fuels and advanced petrochemicals, while driving technology transfer and local economic development.

Technology and Sustainability:

• Technological Benchmarking:
  • Latest Honeywell UOP LD Parex™ aromatics technology delivers lowest global carbon intensity per tonne of paraxylene produced.
  • Modular complex design allows for future downstream green energy additions, including renewable fuels and sustainable aviation fuel.
• Sustainability Focus: 
  • Hydrogen coproduced is targeted for green energy initiatives.
  • The facility’s design results in high resource efficiency, reduced water usage, and optimization of waste handling.

Recent Milestones:

• Final Investment Decision: August 2024
• Commencement of EPC: October 2024
• Construction Start: Mid-2025
• Targeted Operations Start-up: Q4 2028

References

1. https://www.ogj.com/refining-processing/refining/construction/article/55250287/chemone-advances-development-of-malaysian-petrochemicals-complex
2. https://www.pengerangenergy.com/project-insights/
3. https://www.hydrocarbonengineering.com/petrochemicals/10062025/pengerang-energy-complex-boosts-asias-petrochemical-supply-chain/
4. https://www.pengerangenergy.com/press-centre/execution-commences-for-the-pengerang-energy-complex-in-johor-malaysia/
5. https://www.icis.com/explore/resources/news/2023/10/25/10937171/malaysia-s-pec-to-soon-award-epc-contract-for-new-complex-ceo
6. https://www.hydrocarbonengineering.com/petrochemicals/15092023/pengerang-energy-complex-set-to-deliver-new-technology-enabling-benchmarks/
7. https://www.pengerangenergy.com/press-centre/pec-selects-honeywell-uop-technology-for-its-world-scale-aromatics-plant/
8. https://www.bernama.com/en/news.php?id=2092754
9. https://www.oilandgasmiddleeast.com/news/saudi-banks-lead-500m-push-for-malaysias-low-carbon-pengerang-energy-complex
10. https://hydrocarbonprocessing.com/news/2023/03/pengerang-energy-complex-inks-102-b-agreements-for-feedstock-supply-and-product-offtake
11. https://www.pengerangenergy.com/press-centre/pec-signs-feedstock-and-offtake-contract-with-blue-chip-energy-and-trading-partners-worth-usd102bn/
12. https://img.exim.gov/s3fs-public/esia/AP089431XX/PEC_ESMP Main Report.pdf
13. https://www.pengerangenergy.com/wp-content/files/HRIA_10052022_Rev 02.pdf
14. https://www.sace.it/en/about-us/sustainability/our-environmental-and-social-commitment/details/environmental-and-social-impact-assessment-availability-for-the-pengerang-energy-complex-project