About ChemOne project

• The USD 5 billion-plus Pengerang Energy Complex in Malaysia has received USD 500 million financing support from leading Middle East banks and financial institutions including the Islamic Development Bank (IsDB).
• The Islamic Corporation for the Development of the Private Sector (ICD) and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), two key subsidiaries of IsDB, are also participating in an Islamic Finance Tranche for PEC, which is currently oversubscribed with strong participation from reputable banks. This tranche is being led by Al Rajhi Bank in Saudi Arabia as the lead Islamic Bank and ICIEC coordinator.
• The debt financing of the PEC is anchored by international Export Credit Agencies (ECA), amounting to USD 3.5 billion, which along with the Islamic finance tranche, completes the senior debt structure of PEC. The involvement of these sovereign financial institution ECAs, along with high-quality independent advisors, has provided significant assurance for the project. PEC is also in talks with other investors and lenders from across the Middle East region who are considering to invest in the project.

Pengerang Energy Complex’s Capacity

• 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). Another important connection between the PEC project and the Middle East region is that it will utilise natural gas condensate, or Deodorized Field Condensate (DFC), from the Middle East.
• Italy’s Maire Tecnimont has been selected as the engineering, procurement, construction and commissioning (EPCC) partner for PEC. Tecnimont also recently won a large contract worth USD 8.7 billion from ADNOC.

PEC is Sustainable from both a Business and Environmental Standpoint

• Technology provider, Honeywell UOP utilises the latest innovations to achieve maximum plant efficiency, lowest energy requirements, and lowest carbon footprint. The adoption of Honeywell UOP’s LD-PAREX™ technologies has resulted in a new material balance that is almost 10% higher (versus previous base case), enabling PEC to use the same quantities of feedstock to produce higher quantities of products, which will lead to better EBITDA for the project.
• When completed, the PEC is set to be one of the largest low-carbon aromatics production facilities in the world. Aside from delivering high ESG value, the project will have a substantial positive impact on Malaysia’s economy with 100% of the revenues deriving from exports to international markets.
• PEC has already signed long-term feedstock supply and product off-take agreements with leading energy majors Chevron and Equinor, Thai national oil company PTT, and marquee Japanese trading house Mitsui & Co., Ltd. in March 2023. Worth a combined total of USD 102 billion, these agreements will support the full needs of PEC for its initial twelve years of operation.
• Meanwhile, Zeit Operation & Maintenance Co., Ltd., (“Zeit”) a wholly owned subsidiary of leading Korean conglomerate GS Engineering & Construction Corporation, was awarded the operations and maintenance (O&M) contract for the PEC project in February 2024. 
• PEC has been designed to optimize energy efficiency, minimize equipment size, and significantly reduce carbon footprint and has been developed in line with International Financial Corporation's (IFC) performance standards and Equator Principles 4. The project fully complies with the highest standards, including IFC environmental standards and Equator Principles 4 with environmental consultant, Ramboll, having conducted a thorough due diligence review of the project.

Partners supporting the Pengerang Energy Complex

Jawad Khokhar

Jawad Khokhar is the Head of Infrastructure, Energy and Mining Financing at Islamic Corporation for the Development of the Private Sector (ICD).

He is based in Jeddah, KSA

Jawad Khokhar said: “ICD is proud to support the development of this state-of-the-art aromatics complex in Malaysia that aligns with its goals of promoting economic growth and sustainable development in its member countries. The project is expected to be a major export contributor for Malaysia and has strong financial backing from leading global financial institutions. ICD is committed to supporting such impactful and sustainable projects across its member countries.”