KUALA LUMPUR (Dec 4): The Pengerang Energy Complex remains on track for financial close, projection execution and production launch, its Singapore-based developer ChemOne Group said.
ChemOne has secured financing commitments of about US$3.5 billion (RM14.4 billion) from export credit agencies and development banks, the company said on its website. The statement was a response to reports about project schedule slippages from construction and financing challenges.
“Project fundamentals remain solid, with continued confidence and alignment among key stakeholders,” ChemOne said.
If successful, the project will become one of the region’s largest aromatics and energy facilities, with annual output of nearly three million tonnes of aromatics and four million tonnes of petroleum products.
The Edge Malaysia weekly had reported in its Nov 10-Nov 16, 2025 issue about a setback at the proposed downstream petrochemicals facility from achieving financial close due to potential cost escalation on the part of its construction partner.
The costs of the engineering, procurement and construction has risen from the initial US$2.5 billion by its contractor Italy-based Maire SpA has resulted in the project being unable to achieve financial close, according to people familiar with the matter.
ChemOne is understood to be exploring other contractors, although one of the people said the project financing could be affected, considering as much as US$1.16 billion is provided by the Italian Export Credit Agency, The Edge reported.
Originally slated to begin construction this year, the complex’s revised start-up date is now the first quarter of 2029, according to ChemOne’s website.