EXIM set to approve Malaysian Refinery Funding

Export-Import Bank of the United States (EXIM) has received an application for final commitment for a long-term loan or financial guarantee to support the work of Honeywell UOC's engineering of the Pengareng Energy Complex at the tip of the Malaysian Peninsula.   

Comments must be received on or before August 30, 2024 to be assured of consideration before final consideration of the transaction by the Board of Directors of EXIM.

In February the Board received a request to increase the financed amount  to  a $743 million direct loan to support the export of approximately $439 million worth of U.S. engineering services,  design services, licenses, catalysts, and refining equipment.  [11765]

The February notice was an amendment of a previous application for a $525 million long-term loan guarantee to support the export of approximately $366 million worth of services and supplies. There has been no significant change in the expected output of the facility.

In September 2023, Honeywell UOP announced it had  completed its first phase of design-related works for the US$5 billion PEC.

The Pengerang Energy Complex Petrochemical Project, Malaysia is being developed by Singapore-based ChemOne Corp, with agreements for feedstock supply and product off-take with energy majors Chevron and Equinor, Thai national oil company PTT, and trading house Mitsui & Co. Ltd, worth a combined total of US$102 billion.

The supported U.S. exports will enable the facility to produce 725 thousand metric tons per year of jet fuel, 894 thousand metric tons per year of light naphtha, 432 thousand metric tons per year of low sulfur fuel oil, 1.83 million metric tons per year of paraxylene, a textile feedstock., and 632 thousand metric tons per year of benzene.

Production of paraxylene and benzene will primarily be sold to East Asia, while production of jet fuel, light naphtha, low sulfur fuel oil will primarily be sold regionally in Southeast Asia.  

The Pengerang Energy Complex, located approximately 400km south of Kuala Lumpur is part of part of the larger 22,000-acre Pengerang Integrated Petroleum Complex (PIPC). Total investment for the PIPC project is reportedly in excess of  MYR97bn ($27bn), with principal refinery operations a joint venture of Malaysian oil and gas company Petroliam Nasional Berhad (Petronas) and Saudi Aramco, which is the national oil company of Saudi Arabia.  Petronas reportedly finances more than one third of Malaysia's government budget via dividends

Applications for Long-Term Loans or Financial Guarantees in Excess of $100 million