Singapore's ChemOne delays Pengerang complex's start to 2028

PEC

16/12/2024 05:07

SINGAPORE, Dec 16 (Reuters) - Singapore's ChemOne Group
has delayed the start of its Pengerang Energy Complex (PEC) to
the fourth quarter of 2028, with construction set to begin by
mid-2025, it said on Monday, after securing more financing for
the project. 
    The project has secured an agreement for financing of $3.5
billion, the company said.
    "As the petrochemicals industry is set to grow
exponentially, alongside rapid economic development across East
Asia and Southeast Asia, the PEC project is poised to form a key
driver of demand for quality aromatics in the medium to long
term," Alwyn Bowden, PEC's chief executive, said.
    The $5 billion project's start has been delayed multiple
times in the past few years after it was first announced in
2020.
    The company did not immediately respond to a Reuters request
for comment on the reason for changes in the timeline. 
    Earlier this year, ChemOne Group awarded the operations and
maintenance contract for the PEC site to a subsidiary of GS
Engineering & Construction Corp  006360.KS .
    When completed, the site is expected to house a
petrochemical facility that can produce up to 2.6 million metric
tons per annum (mtpa) of products such as paraxylene, a
feedstock for synthetic fibres and plastic bottles, and 3 mtpa
of fuel products including jet fuel. 
    

 (Reporting by Trixie Yap; Editing by Sonia Cheema)
 ((trixie.yap@thomsonreuters.com;))