The Pengerang Energy Complex (PEC), a world-scale integrated refining and petrochemical complex being developed in Pengerang, Johor, Malaysia, within the Johor-Singapore Special Economic Zone (JS-SEZ), has awarded its EPCC (Engineering, Procurement, Construction and Commissioning) works to China National Chemical Engineering Company Limited (CNCEC), it is reported.
It is reported that the project owner, Pengerang Energy Complex, is a project company under ChemOne Holdings Pte Ltd. The related press release was issued under the name of Singapore-based ChemOne Holdings, and it is reported that this announcement marked the first public disclosure of the EPCC contractor selection. According to a press release issued in Singapore on June 9, Honeywell UOP’s process technology is a core element of the PEC’s process design, and CNCEC’s familiarity with this technology was cited as a factor in its selection as EPCC contractor, it is reported. The project was described as a world-scale integrated refining and petrochemical complex producing transportation fuels and aromatics products, though the announcement did not specify production capacity or the construction and start-up schedule.
It is reported that the project is a large-scale southern Malaysian refining and petrochemical development tied to the Johor-Singapore Special Economic Zone, notable for its application of Honeywell UOP’s aromatics-related process technology. Pengerang is already home to Malaysian national oil company Petronas’ large integrated RAPID complex, and the area is reported to be attracting further refining and petrochemical investment alongside the development of the Johor-Singapore Special Economic Zone.
Implications for Korea’s Industry With Chinese EPC firms continuing to win contracts across southern Malaysia’s refining and petrochemical corridor, it is reported that Korean construction firms eyeing the Southeast Asian market should also pay close attention to project finance structures and technology partnership arrangements.
The timing of ECA and project finance approvals, the subsequent final investment decision, and the disclosure of the EPCC contract value, production capacity and schedule are reported to be worth watching.