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

ChemOne Group, a Singapore-based company, has announced that it will delay the start of construction of its Pengerang Energy Complex to the fourth quarter 2028. Construction is expected to begin in mid-2025. This comes after the group secured more funding for the project.

The company announced that the project had secured an agreement for funding of $3.5 billion.

Alwyn Bowden said that the PEC project will be a major driver for the demand for high-quality aromatics on a medium to long-term basis, as the petrochemicals sector is expected to grow exponentially along with rapid economic growth in East Asia and Southeast Asia.

After it was announced in 2020, the $5 billion project has been delayed several times over the last few years.

The company didn't immediately respond to an inquiry about the reasons for the changes in the timeline.

Earlier this summer, ChemOne Group gave a subsidiary company of GS Engineering & Construction Corp. the contract for operations and maintenance at the PEC.

The site will be able to produce up to 2.6 millions metric tons of paraxylene per year (mtpa), a feedstock used in synthetic fibres, plastic bottles and other products. It can also produce 3 mtpa for fuel products, including jet fuel.

(source: Reuters)