Chinese firm inks final agreement for 3.4b-investment in Brunei oil refinery

Chinese firm inks final agreement for 3.4b-investment in Brunei oil refineryChina’s petrochemical company Zhejiang Hengyi through its joint venture Hengyi Industries Sdn Bhd with a Brunei company announced on March 27 that it signed the final agreement to invest no less than $3.445 billion in the construction of its planed integrated refinery and aromatics complex at Pulau Muara Besar in Brunei.

The company already signed a land lease agreement for the project with the Brunei Economic Development Board in April 2012 and began construction on the 260-hectare plot. However, it took a wile until the Chinese signed the final official agreement this March.

“The Hengyi Industries’ crude oil refinery and aromatics cracker complex on Pulau Muara Besar is one of the largest single foreign direct investments the country has seen in recent years,” the Minister at Bunei’s Prime Minister’s Office and Second Minister of Finance, Abdul Rahman, said.

According to Hengyi, the planned petrochemical plant will process approximately 175,000 barrels per day of crude and condensate and produce approximately 1.5 million tonnes of paraxylene, 500,000 tonnes of benzene, as well as other refined products such as gasoline, jet fuel and diesel.

Site construction is set to be completed by the end of 2018, and the refinery is expected to begin operation in the first half of 2019.

According to the Prime Ministry’s office, the plant will “ensure Brunei’s self-sufficiency in refined products” and “boost spinoffs for further high value-added downstream industries.” Currently, Brunei has only one small refinery operated by Brunei Shell Petroleum with a capacity of 10,000 barrels per day which hardly covers local demand.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

China's petrochemical company Zhejiang Hengyi through its joint venture Hengyi Industries Sdn Bhd with a Brunei company announced on March 27 that it signed the final agreement to invest no less than $3.445 billion in the construction of its planed integrated refinery and aromatics complex at Pulau Muara Besar in Brunei. The company already signed a land lease agreement for the project with the Brunei Economic Development Board in April 2012 and began construction on the 260-hectare plot. However, it took a wile until the Chinese signed the final official agreement this March. "The Hengyi Industries' crude oil refinery and...

Chinese firm inks final agreement for 3.4b-investment in Brunei oil refineryChina’s petrochemical company Zhejiang Hengyi through its joint venture Hengyi Industries Sdn Bhd with a Brunei company announced on March 27 that it signed the final agreement to invest no less than $3.445 billion in the construction of its planed integrated refinery and aromatics complex at Pulau Muara Besar in Brunei.

The company already signed a land lease agreement for the project with the Brunei Economic Development Board in April 2012 and began construction on the 260-hectare plot. However, it took a wile until the Chinese signed the final official agreement this March.

“The Hengyi Industries’ crude oil refinery and aromatics cracker complex on Pulau Muara Besar is one of the largest single foreign direct investments the country has seen in recent years,” the Minister at Bunei’s Prime Minister’s Office and Second Minister of Finance, Abdul Rahman, said.

According to Hengyi, the planned petrochemical plant will process approximately 175,000 barrels per day of crude and condensate and produce approximately 1.5 million tonnes of paraxylene, 500,000 tonnes of benzene, as well as other refined products such as gasoline, jet fuel and diesel.

Site construction is set to be completed by the end of 2018, and the refinery is expected to begin operation in the first half of 2019.

According to the Prime Ministry’s office, the plant will “ensure Brunei’s self-sufficiency in refined products” and “boost spinoffs for further high value-added downstream industries.” Currently, Brunei has only one small refinery operated by Brunei Shell Petroleum with a capacity of 10,000 barrels per day which hardly covers local demand.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply