As the largest overseas investment by a private Chinese company, the anticipated construction of the refinery and aromatics cracker in Brunei marks a significant milestone for the Zhejiang Hengyi Group. From its modest early stages at the lower end of the value chain, the company is now gradually diversifying and venturing into more sophisticated and capital-intensive businesses.
Under the rule of a reigning monarch for the past 600 years, the prosperous nation of Brunei Darussalam has created an environment that is economically and politically stable. Its strategic location at the heart of South East Asia makes Brunei Darussalam an ideal location for export-oriented activities.
Brunei’s desire to further develop its downstream sector and Zhejiang Hengyi’s aspiration to back integrate its production activities has created the perfect synergy for both parties to develop a world class refinery and integrated petrochemical complex. Hengyi’s Oil Refinery and Aromatics complex is currently one of the most significant development projects in the area of economic and trade between China and Brunei.
The project will be split into a two phase development schedule. During the first phase, the refinery will have the capacity to refine 175,000 barrels of crude oil per day, churning out refined products to cater for domestic demand and aromatics for export to China as feedstock for Zhejiang Hengyi Group’s assets. Once completed, the first phase of the project alone is expected to contribute as much as 40% to Brunei’s Gross Domestic Product. The second phase includes plans for further expansion of the aromatics and cracker plant, providing the building blocks for the petrochemical industry.
To date, it has been a fruitful journey for Hengyi Industries with some major accomplishments under its belt including the granting of a pioneer status from the Brunei government; establish a joint Chemical & Process Engineering Scholarship Programme with UBD & Zhejiang University; signing of the Implementation Agreement for Phase 1; MOU to develop Phase 2 as well as the opening of Hengyi Industries International Pte Ltd in Singapore.