PEC signs multiple offtake agreements

Malaysia's Pengerang Energy Complex (PEC) said recently that it has signed feedstock and product offtake agreements with various companies to build its previously announced integrated condensate fractionation and aromatics complex in Pengerang, Malaysia. 

The PEC facility, developed by Singapore's ChemOne Group with an investment of US$4.5 billion, will be located within the Pengerang Integrated Petroleum Complex (PIPC) in Johor. The raw material supply and product offtake agreements were signed by Chevron, Norway's Equinor, Thailand's PTT Group and Mitsui Corporation. The agreements, worth a combined $102 billion, will cover the entire needs of PEC's initial 12 years of operations. Details of the agreement were not disclosed.

The condensate fractionation unit has a production capacity of 150,000 barrels per day and will produce heavy naphtha for aromatics production. The complex has a total production capacity of 6.5 million tons/year, including 2.3 million tons/year of aromatics and 0.5 million tons/year of hydrogen. PEC expects to award the engineering contract for the project in mid-2023. ChemOne selected Honeywell UOP technology for the project's paraxylene plant in 2021. The PEC forecasts that the complex will generate about $5 billion in export sales per year.