(Yicai Global) March 30 -- Chinese private company Zhejiang Hengyi Group Co. will spend more than USD3.4 billion to build an oil refinery in Brunei.
On Monday, the company announced, Zhejiang Hengyi will invest USD3.4 billion in the country's petrochemical industry and some other related businesses, and build a petrochemical plant with an annual production capacity of around 10 million tons in Pulau Muara Besar (PMB), it announced in Bandar Seri Begawan, Brunei's capital city.
Its local subsidiary jointly established with the Brunei government institutions, Hengyi Industries (Brunei) Co., signed the 'Implementation Agreement' for the PMB project with the Brunei Energy Board and Economic Development Board on the same day. The PMB petrochemical project was approved by the Brunei government in 2011 and by China's National Development and Reform Commission and ministry of commerce in 2013, respectively.
The planned production capacity of the first phase of the project is eight million tons a year (175,000 barrels a day), which is enough to meet Brunei's domestic market demand, the company said, adding that the project will also facilitate the development of downstream businesses in the local oil and gas industry.
Headquartered in Xiaoshan Economic and Technology Development Area in East China's Zhejiang province, Hengyi Group is a private enterprise group operating a wide variety of businesses ranging from purified terephthalic acid (PTA) production and polyester and elastic fiber production to financial investment, import and export and real estate development. It is the owner of Hengyi Petrochemical Co. [SHE:000703], a publicly traded company listed on Shenzhen Stock Exchange.