Singapore based petrochemical company, Pengerang Energy Complex, has successfully secured US$3.5 billion (RM15.58 billion) financing from a combination of

Export Credit Agencies (ECAs) and Islamic financing to support the development of its US$5.3 billion low-carbon petrochemical facility in Johor, Malaysia. The facility, which is set to be a key player in the growing petrochemical industry in East and Southeast Asia, will have a production capacity of 2.6 million tonnes per annum (mmtpa) of aromatic products and 3.0 mmtpa of energy products.

A group of ECAs from North America, Europe, and Asia, including prominent institutions like the US Export-Import Bank, Euler Hermes (Germany), Italy's export credit agency, the Export-Import Bank of Malaysia, and the Islamic Development Bank, have provided financing for the project.

Located within the Pengerang Integrated Petroleum Complex (PIPC) in Johor, the new facility will play a pivotal role in advancing Malaysia's position as a key hub in the petrochemical industry. According to PEC CEO Alwyn Bowden, the project is strategically important for meeting the rising demand for sustainable, low-carbon products in Asia's rapidly expanding industrial markets.

As part of its broader environmental goals, PEC has committed to integrating low-carbon technologies into its operations.

Construction of the facility is scheduled to begin in mid-2025, with commercial operations expected to commence in the fourth quarter of 2028. Once completed, the facility is expected to create approximately 7,000 jobs during its construction phase. In terms of operations, PEC anticipates employing a workforce of 300, with 80% of the operational staff to be hired locally from Malaysia.

The company had announced the project in February 2024.

Pengerang Energy Complex Sdn. Bhd, a Malaysian company, is building a world-leading aromatics complex within the Pengerang Integrated Petroleum Complex (PIPC) in Johor, Malaysia. Singapore-based ChemOne Group, a prominent energy and petrochemical project developer, and its partners will develop, build, and operate the plant, focusing on energy and resource efficiency. The project site was responsibly acquired from Malaysian state entities.

The PEC Complex adheres to IFC standards and the Equator Principles 4 (EP4), with plans for downstream green energy development to establish a sustainable energy hub in Malaysia. The complex will also benefit from existing logistical infrastructure. Backed by strong development expertise and major partners, PEC aims to meet the rising demand for fuel-related commodities in the expanding Asian market.

This project is projected to generate US$5 billion in annual export revenue for Malaysia. Using fully automated processes, the new PEC facility is designed for optimal energy efficiency, minimized equipment size, and significant reductions in greenhouse gas emissions, meeting the International Finance Corporation's (IFC) performance standards.