BANDAR SERI BEGAWAN, Jan. 2 (Xinhua) -- Brunei's largest single foreign-invested project in recent years, Zhejiang Hengyi Petrochemical Project on Pulau Muara Besar (PMB), is expected to be completed by the end of 2018, sources from Hengyi said Monday.
The project has now entered full construction phase, and will be officially put into operation in the first quarter of 2019, said Chen Liancai, chief executive officer of Hengyi Industries Sdn Bhd.
Located on Brunei's PMB, an isolated island to Brunei's mainland, Hengyi Petrochemical project covers an area of 260 hectares. Under a joint venture agreement, Hengyi Industries Sdn Bhd is co-formed by China's Zhejiang Hengyi company and its Bruneian partner, taking 70 percent and 30 percent of the shares respectively.
"The PMB project will be implemented in two phases, with a total investment of over 15 billion U.S. dollars," Chen said.
"The first phase of the project will cost 3.45 billion U.S. dollars, which is now in full construction and is expected to be completed by the end of 2018 and put into operation in the first quarter of 2019."
Phase II has now been conducted feasibility studies and environmental assessment, and is expected to be put into operation in 2022. After completion, Hengyi will build up an integrated oil refinery and aromatics plant on PMB, with a capacity to process approximately 22 million tons of crude oil annually.
Hengyi said that its products such as xylene, benzene and other chemicals will be sold back to China, while its gasoline and diesel products will ensure Brunei's self-sufficiency in refined products and boost spinoffs for further high value-added downstream industries.
Yang Jian, Chinese ambassador to Brunei, said that since Hengyi entered into Brunei as the single largest foreign investment project in recent years, it has paid great attention to enhancing communication with Brunei government and local industries, and undertook a great social responsibility, which played a important role to promote the healthy development of bilateral relations between Brunei and China.