China approves Zhejiang Hengyi’s $4bn Brunei refinery project

26 February 2013 06:33  [Source: ICIS news]

Brunei landmark - Omar Ali Saifuddin Mosque in Bandar Seri BegawanSINGAPORE (ICIS)--Zhejiang Hengyi has secured regulatory approval from China to build a planned $4.32bn (€3.28bn) refinery project in Brunei that will house the southeast Asian country's first aromatics production, the company’s parent firm Hengyi Petrochemical said on Tuesday.

The refinery complex, which will have an 8m tonne/year capacity, will be built at Pulau Muara Besar, the Shenzhen-listed company said.

The complex will be able to produce 1.5m tonnes/year of diesel; 400,000 tonnes/year of gasoline; 1m tonnes/year of jet kerosene; and 1.5m tonne/year of naphtha, the company had said in April 2012.

It is also expected to produce 1.5m tonnes/year of paraxylene (PX) and 500,000 tonnes/year of benzene, the company said.

Zhejiang Hengyi is building the Brunei refinery to ensure supply of feedstocks PX and benzene for the company’s production of purified terephthalic acid (PTA), polyester and caprolactam, Hengyi Petrochemical said.

The refinery will get part of its crude supply from Brunei Shell Petroleum (BSP).

Details on construction and start-up schedule of the Brunei refinery complex were not provided.

Hengyi Petrochemical is one of the biggest PTA producers in China with a 5.65m tonne/year capacity as of October 2012, according to the company’s website.

($1 = €0.76)

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections

By: Fanny Zhang
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