New financing arrangement will provide liquidity, optimise working capital and cash flow management for PEC
SINGAPORE/KUALA LUMPUR/JAPAN, 5th December 2023 – Singapore-based petrochemicals, green energy and natural resources conglomerate, ChemOne Group, master developer of the Pengerang Energy Complex (“PEC”) has announced the signing of a binding definitive facility agreement with MUFG Bank (Malaysia) Berhad, a part of leading global financial services group, Mitsubishi UFJ Financial Group (“MUFG”).
A key part of the PEC Project Finance package is a USD 300 million non-recourse receivables purchase facility to discount invoices of finished product sales to offtakers. The signed Facility Agreement with MUFG confirms their participation for USD 200 million under this facility. Furthermore, there is a USD 100 million accordion option available under this facility.
Mr. Alwyn Bowden, CEO of Pengerang Energy Complex Sdn Bhd, said: “We’re pleased to put in place robust banking arrangements to enable significant improvement in working capital cycle and cash flow management through this discounting facility successfully concluded with MUFG. This partnership with MUFG is an important move for us as we rapidly move towards the project’s Financial Close, bringing PEC’s financing potential to the expertise of one of the largest banking institutions in Japan and globally.”
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About Pengerang Energy Complex
Pengerang Energy Complex (“PEC”) is set to be one of the largest and most competitive integrated condensate splitter and aromatics facilities in the world. PEC is located in the Pengerang Integrated Petroleum Complex (PIPC) in Johor, at the southern-most tip of Peninsular Malaysia and directly opposite the City State of Singapore, sharing its attributes as a central trading hub and deep-water port.
PEC’s strategic location at the crossroads between buyers or product demand centres in the Asian markets and feedstock suppliers in the USA, Middle East and Australia, makes it an ideal hub for the petroleum and petrochemical industries. The resulting downstream products are used in a wide range of consumer products (textiles, bottles, housing, pharmaceuticals).
The 6.5 million metric tonnes per annum (mmtpa), facility is capable of processing 150,000 barrels per day (bpd) of condensate plus side feed of naphtha, that will in turn produce aromatics of 2.3 mmtpa, energy products output of 3.9 mmtpa and hydrogen output of 50,000 metric tonnes per annum (mtpa).The condensate splitter will produce heavy naphtha, a primary feedstock for the aromatics plant whereas the hydrogen produced is planned to be used to support development of downstream renewable fuels facilities in Johor.
The US$5 billion project is estimated to generate an annual export turnover of US$5 billion for Malaysia. Involving fully automated processes, the greenfield PEC has been designed to optimize energy efficiency, minimize equipment size, and significantly reduce greenhouse gas emissions in line with International Financial Corporation’s (IFC) performance standards.
Offering the latest technological advances, the world-class PEC facility will be one of the largest and most energy efficient integrated condensate splitter and aromatics facilities globally, strategically located to serve the regional Asian markets and satisfy forecast long-term sustained regional growth.
ChemOne Group, a leading energy and petrochemicals project developer based in Singapore, is the master developer for the project. ChemOne’s successful track record over the last 40 years includes managing the end-to-end, award-winning project financing for the Jurong Aromatics Complex in Singapore.