[ad_1]
SINGAPORE (ICIS)–ChemOne will soon award the
engineering, procurement and construction (EPC)
contract for the conglomerate’s $5bn Pengerang
Energy Complex in Malaysia, the CEO of the
project’s operator said on Wednesday.
The EPC deal will likely be announced “in the
next few weeks”, Alwyn Bowden, the CEO of
Pengerang Energy Complex Sdn Bhd (PEC) told
ICIS on the sidelines of the Asian Downstream
Summit in Singapore.
PEC is ChemOne’s business unit that will
operate and manage the proposed petrochemical complex
in Johor, Malaysia.
The EPC announcement will come ahead of the
project’s financial closing which is on track
to be concluded by the end of this year, Bowden
said.
The PEC project, scheduled to enter into
operations in late 2026-2027, is expected to
produce around 2m
tonnes/year of paraxylene (PX).
The PEC project will be capable of processing
150,000 bbl/day of condensate plus side feed of
naphtha, which will, in turn, produce 2.3m
tonnes/year of aromatics, 3.9m tonnes/year of
energy products and 50,000 tonnes/year of
hydrogen.
The project first announced in early
2020 was delayed from its original
start-up timeline of Q4 2022, and the cost has
gone up from the initial estimate of $3.4bn.
The project investment has increased
significantly since its inception, mostly due
to procurement and financial costs which have
risen due to higher interest rates, Bowden
said.
The financial closing for the company’s other
project to process the output from PEC to
produce renewable fuels will likely be “a year
behind” the initial one that is expected by
this year.
The company aims to use the hydrogen produced
from the complex to produce hydrogenated
vegetable oil (HVO), which in turn can be
processed further into sustainable energy fuel
(SAF).
The Asian Downstream Summit is part of the
Singapore International Energy Week (SIEW) 2023
which runs on 23-27 October.
Interview article by Nurluqman
Suratman
[ad_2]
Source link