KUALA LUMPUR, Oct 9 (Reuters) - Petronas Chemicals Group Berhad, a unit of Malaysian state-run energy giant Petronas, said on Monday it will construct Asia's largest advanced chemical recycling plant with a capacity of 33 kilotons per year.

The plant, which will be located in Pengerang in Malaysia's southern state of Johor, is expected to be operational by the first half of 2026.

The facility would convert end-of-life plastics into pyrolysis oil to then be used as chemical feedstock for the production of sustainable plastics, Petronas Chemicals said in a statement.

The company said it has signed an agreement with Plastic Energy Limited, which will provide the chemical recycling technology for the new plant, while Mutiara Etnik Sdn Bhd was awarded the engineering, procurement and construction contract for the project.

(Reporting by A. Ananthalakshmi; Editing by Martin Petty)