KUALA LUMPUR (June 9): The Pengerang Energy Complex (PEC)’s project owner and operator has appointed China National Chemical Engineering Co Ltd (CNCEC) as its main contractor for the downstream petrochemical facility in Johor.

In a statement, Pengerang Energy Complex Sdn Bhd (PECSB) said CNCEC was selected as the engineering, procurement, construction and commissioning (EPCC) contractor “following a rigorous evaluation process that considered technical expertise, financial strength, and project execution capabilities”.

“The award marks a significant milestone for PEC as it advances through the final approval process with global export credit agencies and project finance lenders,” it said.

CNCEC brings the resources, extensive experience in world-scale energy and petrochemical projects, and “familiarity with Honeywell UOP technologies” which form a key part of PEC’s process design, said PECSB.

The announcement also “reflects the project’s continued progress towards construction” and its commitment to delivering a world-scale facility, it added.

The Edge reported in November 2025 that the PEC, part of Singapore-based ChemOne Group, was facing challenges after an upward revision of its engineering, procurement and construction (EPC) cost from the initial US$2.5 billion (RM10.16 billion) by its then initial EPC partner, Italy-based Maire SpA.

It is likely that PECSB has restructured the project finance following the latest update.

Under the previous arrangement, as much as US$1.16 billion was to be provided by the Italian Export Credit Agency when Maire was still on board.

Earlier committed financing also included export credit agencies in the US and Asia, and development banks in the Middle East.

According to earlier announcements, the PEC, an integrated condensate splitter and aromatics facility, is envisioned to produce 2.5 million tonnes of aromatics, 3.9 million tonnes of petroleum and 50,000 tonnes of hydrogen a year.

Aromatics are a type of speciality petrochemical used to enhance the scent and flavour in the food and beverage industry as well as other sectors, such as fragrance, detergents and cosmetics.

Prior to this, it was reported that Chevron Corp is both a feedstock supplier and product offtaker, alongside Norwegian energy firm Equinor ASA. Other offtakers include Thailand-based PTT and Japan-based Mitsui & Co, according to reports.

The project will tap Dialog Group Bhd’s (KL:DIALOG) Pengerang Deepwater Terminals for marine facilities and onshore tank storage.