Pengerang Energy Complex (PEC) has secured project financing of USD 3.5 billion from leading export credit agencies (ECA) and Islamic financing entities to develop a state-of-the-art low-carbon petrochemicals facility in Malaysia. The financing agreement was ratified in Kuala Lumpur by representatives from five ECAs, including the Export-Import Bank of the United States and the Islamic Development Bank (IsDB), alongside international banks. This significant funding will support the construction of a facility designed to produce 2.6 million metric tons per annum (mmtpa) of aromatic products and 3 mmtpa of associated energy products.
Construction is slated to begin in mid-2025, with the facility expected to commence operations in the fourth quarter of 2028. PEC CEO Alwyn Bowden expressed gratitude for the confidence shown by their partners, emphasizing that this project is poised to meet the growing demand for quality aromatics in the region, driven by rapid economic development across East Asia and Southeast Asia.
The project aligns with Malaysia’s commitment to advancing low-carbon industrial innovation and sustainable practices. Exim Bank Malaysia’s director highlighted the initiative’s role in enhancing the country’s economic resilience while showcasing how global collaboration can drive transformative change in high-growth sectors like petrochemicals. This project represents a significant step forward in Malaysia’s industrial capabilities, economic resilience, and sustainability efforts.
(Source: The Sun)