ChemOne Group, a Singapore-based petrochemicals, green energy, and natural resources conglomerate, has completed a significant milestone by securing finance for the Pengerang Energy Complex (PEC) in Johor, Malaysia.
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a wholly-owned subsidiary of the Islamic Development Bank (IsDB), has authorized a historic US$350 million insurance cover to assist Islamic banks involved in the project.
The cover, which is structured under a Murabaha financing facility, provides 90% protection on both principal and profit, significantly reducing the risk of the transaction for participating banks such as National Bank of Kuwait (NBK), Qatar National Bank (QNB), Al Rajhi Bank Malaysia, and Al Rajhi Bank KSA—the latter serving as lead Islamic bank, ICIEC coordinator, and investment agent.
In parallel, the IsDB Group, through IsDB and the Islamic Corporation for the Development of the Private Sector (ICD), has pledged an additional USD 150 million through Istisna-Ijara structures.
This raises the Group’s overall funding for PEC to more than $500 million, making it one of the largest engagements in Southeast Asia. With AA- and Aa3 credit ratings from S&P and Moody’s, respectively, ICIEC’s involvement demonstrates significant institutional confidence in PEC and its long-term strategic relevance.
Mayank Vishnoi, Chief Financial Officer of ChemOne Group, described ICIEC’s support as “a powerful validation of PEC’s financial strength and far-reaching development impact,” noting that the project will drive regional industrial growth, create thousands of jobs, and strengthen value chains, all while adhering to global ESG standards.
The PEC, located within the Pengerang Integrated Petroleum Complex (PIPC) in Johor, is intended to be one of Southeast Asia’s most modern and sustainable energy and petrochemical complexes.
It will use UOP Honeywell’s cutting-edge LD Parex technology to improve energy efficiency, lower emissions, and enable variable feedstock processing, establishing it as a next-generation integrated condensate splitter and aromatics facility.
During construction, PEC is planned to create roughly 7,000 employment and 300 operating roles after completion, with Malaysians filling 80% of these positions. Local SMEs will profit from US$1.2 billion in contracts for fabrication, erection, civil works, and supply chains.
Once operational, the complex is expected to generate an annual export turnover of USD 5 billion, strengthening Malaysia’s position in the regional oil and gas value chain and helping the government’s objective to improve downstream capabilities.
Notably, the present trend in cold storage investment reflects a strategic realignment, with developers emerging as major buyers and investment managers moving toward divestment—indicating confidence in the sector’s fundamentals rather than distressed selling.
This strategy also emphasizes the developing vertical integration within the energy and logistics ecosystems, as players seek to combine development expertise with operational capabilities to maximize long-term value.
The significant support of ICIEC and the IsDB Group underlines PEC’s vital role in enhancing regional energy resilience, supporting sustainable growth, and establishing Johor as a key hub for sophisticated petrochemical infrastructure in Southeast Asia.
