December 16, 2024 [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.

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.

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