Pulau+Muara+Besar



====The Brunei Economic Development Board (BEDB) today announced that His Majesty The Sultan and Yang Di-Pertuan of Brunei Darussalam has consented to the establishment of a US$2.5 billion oil refinery and aromatics cracker project.==== ====The oil refinery and aromatics cracker project, which will be developed in two phases by Zhejiang Hengyi Group Co. Ltd. (Zhejiang Hengyi), a leading private Chinese company, will be located on a 260-hectare site at Pulau Muara Besar. With a production capacity of approximately 135 thousand barrels per day, the first phase of the refinery and aromatics cracker project will comprise the production of petroleum products such as gasoline, diesel and jet A-fuel, as well as paraxylene and benzene which are mainly used in textile production.==== ====The establishment of the oil refinery and aromatics cracker project in Brunei is expected to create more than 800 jobs, of which the majority will be for local Bruneians. The company has also offered a local equity participation of up to 30 per cent in the project. Recently, a site visit to Zhejiang Hengyi’s downstream plants and Sinopec Zhenhai Refinery in China was conducted by the BEDB, together with the Energy Division of the Prime Minister’s Office, as a major part of the due diligence process.==== ====Following successful completion of Phase 1, the company plans a further investment of US$3.5 billion for the expansion of the refinery to allow for the production of olefins, which are used as raw materials in plastic production. This expansion is expected to create a further 1200 employment opportunities.==== ====A portion of the crude oil and condensate, which will be used as feedstock, will be sourced locally and a portion of the gasoline, diesel and jet A-fuel produced will be marketed domestically in order to meet the growing demand of local consumption.==== ====The front-end engineering design for the project will be undertaken by Sinopec Engineering Incorporation, the engineering arm of Sinopec, which is one of the major state-owned petroleum companies in China. This will be followed by a detailed engineering study over the next twelve months before the construction of the plant commences. In addition to creating a significant boost in local employment, the project is also expected to procure non-technical supplies from local companies as well as other indirect spin-offs and increased economic activity such as plant construction and maintenance, packaging, shipping, logistics and warehousing, as well as training and development opportunities in relevant fields.==== ====“The BEDB will continue to work very closely with Zhejiang Hengyi and other relevant stakeholders towards the successful implementation of this project. It is hoped that the investment by Zhejiang Hengyi will not only contribute to Brunei’s economic growth but will also act as a catalyst to develop Pulau Muara Besar and its surrounding areas.” said Dato Paduka Hj Ali Apong, Deputy Minister at the Prime Minister’s Office, who is also Chairman of the BEDB.====
 * =Over US$2.5b investment in oil refinery and aromatics cracker project in Brunei= ||
 * Bandar Seri Begawan, Monday 4th July 2011.

Press Contact: Lela Suhailee ( lela@bedb.com.bn )
== Also see: [|Chinas-Zhejiang-Hengyi-to-build-Bruneis-first-aromatics-units.] April 10th 2012 ==

[|Zhejiang Hengyi Refinery project takes shape in Brunei] **8th May 2012**  $4 billion for first Brunei Refinery & Aromatics complex ** Zhejiang Hengyi Petrochemicals co.ltd ** (** Zhejiang Hengyi) **is the largest ** polyester fibers ** manufacturer in ** China **. Founded in 1994 it is a privately owned company.  ** Zhejiang Hengyi ** is planning to build an ** integrated refinery ** and** petrochemical complex ** at ** Pulau Muara Besar ** in ** Brunei Darussalam **with the country’s first **[|aromatics] ** production facilities, the chemical-fibers production units.  The ** Pulau Muara Besar refinery project ** will include: The ** capital expenditure ** for the first phase ** Pulau Muara Besar refinery project ** is estimated about ** $4.29bn **   The production of **[|aromatics] ** at the ** petrochemical complex ** will be the first of its kind in ** Brunei. ** The ** front end engineering and design ** for the project will be undertaken by ** Sinopec Engineering Inc. (SEI) **, the engineering arm of ** Sinopec. ** The crude oil feedstock will be sourced locally and a portion of the gasoline, diesel and jet A-1 fuel produced will be marketed domestically in order to meet the growing demand of local consumption. A ** non-binding [|memorandum of understanding (MoU)] ** has been signed between ** Brunei Shell Petroleum ** (BSP), Brunei ** Shell ** Marketing and ** Zhejiang Hengyi **, with respect to the supply of ** crude oil ** to the project and its offtake of refinery products. The plant alone can meet ** 30 % of Zhejiang Hengyi **‘s demand for petrochemical products. The ** completion ** is expected for ** 2015 ** The ** capital expenditure ** for the second phase ** Pulau Muara Besar refinery project ** is estimated at ** $3.5bn ** to expand the ** refinery ** to produce **[|olefins] **,
 * - 135,000 b/d crude and condensates refinery **
 * - 1.5 million t/y diesel **
 * - 400,000 t/y gasoline **
 * - 1 million t/y jet A-fuel **
 * - 1.5m tonne/year “light” [|naphtha] cracker **
 * - 1.5m tonne/year paraxylene (PX) unit **
 * - 500,000 tonne/year benzene plant **
 * Pulau Muara Besar refinery project ** aims to help reduce ** Zhejiang Hengyi **‘s reliance on imports of petrochemical products. Currently, ** 60% ** of its consumption of ** p-xylene ** comes from imports.

==See also: [|Zhejiang Hengyi to invest $US6b to build petrochemical plant in Brunei] Dec 2011== ||
 * = Multiplier Effect =
 * = Multiplier Effect =

 An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. For example, if a corporation builds a factory,it will employ construction workers and their suppliers as well as those who work in the factory. Indirectly, the new factory will stimulate employment in laundries, restaurants, and service industries in the factory's vicinity.

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