KUALA LUMPUR: Pengerang Energy Complex Sdn Bhd (PEC) has negotiated financing terms for US$3.5 billion in project financing from export credit agencies (ECAs) across North America, western and southern Europe, Asia and Islamic financing from Islamic Development Bank entities.
In a joint statement today, PEC said the capital secured will be channelled to implement a US$5.3 billion latest-generation, low-carbon petrochemical facility.
The five ECAs are the Export-Import Bank of the United States; Euler Hermes AG from Germany, Italian export credit agency, Compañía Española de Seguros de Crédito a la Exportación; Export-Import Bank of Malaysia Bhd and Islamic Development Bank. Their representatives were in Kuala Lumpur to ratify the terms for the financing agreements with PEC representatives.
“The facility will be used to produce 2.6 million tonnes per annum (mmtpa) of aromatic products and 3.0 mmtpa of associated energy products.
“Construction will start in the middle of 2025 and the project will go on stream in the fourth quarter of 2028,” it said.
PEC chief executive officer Alwyn Bowden said the financing will help further bolster PEC's financial stability and accelerate progress for the project which is already well underway in terms of planning and engineering.
“We are grateful for the confidence our partners have shown in this project. The discussions held today will enable us to fully conclude the project's debt financing within the coming few months and start construction by the middle of next year.
“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,” he said.
He said the PEC is strategically located to serve the regional Asian markets and satisfy demand.
Located within the Pengerang Integrated Petroleum Complex in Johor, PEC is set to be one of the largest and most competitive integrated condensate splitter and aromatics facilities in the world.
The project is also expected to employ around 7,000 during the construction phase. When operational, 80 per cent out of 300 manpower will be Malaysians. - Bernama
