China’s Zhejiang Hengyi to build refinery, aroms facility in Brunei

04 July 2011 09:13  [Source: ICIS news]

GUANGZHOU (ICIS)--China’s Zhejiang Hengyi Group has received approval from the Brunei government to build a $2.5bn (€1.7bn) refinery and aromatics facility in the southeast Asian country, the Brunei Economic Development Board (BEDB) said in a statement on Monday.

The facility, located at Pulau Muara Besar, will have a refining capacity of around 135,000 bbl/day in the company’s first phase of construction, BEDB said.

The company will produce petroleum products such as gasoline, diesel and jet A-fuel at its new facility.

It will also produce paraxylene (PX) and benzene, which are mainly used in textile production.

The company will use crude oil and condensates as feedstock at the refinery, according to BEDB.

It will source part of the feedstock from Brunei’s local markets, the statement added.

The company will sell part of its petroleum output in Brunei to meet growing local demand, BEDB said.

The statement did not say where the company will sell its remaining petroleum output and aromatic products.

In addition, Zhejiang Hengyi is planning to invest $3.5bn to expand the refinery to produce olefins, according to the statement.

This will be the company’s second phase of the project.

The company will expand its refinery after the successfully completing the first phase of construction at the facility.

Zhejiang Hengyi has offered a local equity participation of up to 30% in the project.

The statement did not reveal when the company will begin building the facilities, while company sources said they do not have further details.

($1 = €0.69)

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By: Fanny Zhang
+65 6780 4359

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