Brunei-China Joint Venture To Invest 13.654 billion USD On Petrochemical Expansion

BANDAR SERI BEGAWAN, Sept 17 (NNN-ANN) – Hengyi Industries Sdn Bhd, a petrochemical joint venture between Brunei and China said, the company is planning to invest about 13.654 billion U.S. dollars, in the construction of the second phase of its oil refinery and petrochemical project at Pulau Muara Besar (PMB), a 955-hectare industrial park on an island at the Brunei Bay.

Chen Liancai, Hengyi’s chief executive officer said, the construction of the proposed second phase of PMB oil refinery and petrochemical project is expected to last for three years, and that, it will add 14 million tonnes of crude oil processing capacity per year upon completion.

“After the completion of the second phase, our products will not only meet the domestic market demand, but also supply regional and international markets”, Chen said, adding, the construction plan of the second phase is awaiting approval from the Brunei government.

Hengyi Industries is a joint venture between China’s Zhejiang Hengyi Group and Damai Holdings, a wholly-owned subsidiary under the Brunei government’s Strategic Development Capital Fund, owning 70 percent and 30 percent of the shares respectively.

Hengyi invested about 3.45 billion U.S. dollars in the first phase, which went into full operation in Nov, 2019, and equipped the company with eight million tonnes of crude oil processing capacity per year.

Wang Xiaolin, President of the Chinese Enterprise Association in Brunei and General Manager of Bank of China Brunei Branch, said, while oil and gas exports still play an important role in Brunei’s economy, Hengyi’s oil refinery and petrochemical project becomes an important stabiliser for local economy in face of continued low oil prices.

“The second phase of Hengyi’s PMB project is expected to create more jobs in Brunei, boost local industries and growth and help achieve the diversification of Brunei’s economy,” Wang added.– NNN-ANN