Contributing towards the development of Brunei’s downstream oil and gas sector, creating more local business opportunities through economic spin-offs and propelling the nation closer towards achieving Brunei Vision 2035 and supporting the Economic Blueprint of Brunei Darussalam, the Petroleum Authority of Brunei Darussalam and Brunei Economic Development Board (BEDB) signed the Implementation Agreement for the Pulau Muara Besar (PMB) Phase 2 Development Project with Hengyi Industries Sdn Bhd (Hengyi) at a ceremony at The Empire Brunei yesterday.
It is anticipated that with Phase 2 project’s completion, an addition of over 2,000 employment opportunities will be created with 50 per cent of the figure allocated for Bruneians from the start of operations in 2029, contributing to Brunei’s socio-economic development.
Under the project, the complex will include the development of processing facilities such as a 1.65MMTA ethylene cracker with a 2.5/2.2MMTA purified terephthalic acid/polyethylene terephthalate (PTA/PET) plant, as well as three new jetties. The project will also equip the complex to produce more types of refined petroleum products such as ethylene, polyethylene, butadiene, and polypropylene that will serve as vital raw materials for downstream industries, spanning from textiles to agriculture and automobile to electronics manufacturing.
Minister at the Prime Minister’s Office (PMO) and Minister of Defence II Pehin Datu Lailaraja Major General (Rtd) Dato Paduka Seri Haji Awang Halbi bin Haji Mohd Yussof as Co-Chair of the PMB Development Steering Committee; Minister at the PMO and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah as Chairman of the Foreign Direct Investment and Downstream Industry Steering Committee; Minister of Development Dato Seri Setia Awang Haji Muhammad Juanda bin Haji Abdul Rashid as Co-Chair of the PMB Development Steering Committee; and Zhejiang Hengyi Group Co Ltd Chairman and Hengyi Chairman Qiu Jianlin were the guests of honour. PMB Development Steering Committee members were also present.
Pehin Datu Lailaraja Major General (Rtd) Dato Paduka Seri Haji Awang Halbi shared the significance of the project.
“The Phase 2 project of the Hengyi Industries’ Integrated Refinery and Petrochemical Complex will enable Brunei to introduce new sources of feedstock such as liquefied natural gas (LNG) and Ethane to Brunei Darussalam, essential for the production of the Sultanate’s first high value derivate petrochemicals. This will further increase the complex’s refining by an additional of two million tonnes per annum totalling to 11 million tonnes per annum, through the construction of new additional facilities at the PMB Industrial Park. This will officially establish PMB as the foundation for oil-based downstream development and investments in the country, elevating Brunei’s presence in the region as a competitive player in the sector,” he said.
“Since its commissioning in 2019, Hengyi Industries has been instrumental in strengthening Brunei’s energy security, and driving the country’s economic growth, having directly contributed over a total of BND4.5 billion to the national GDP until 2022, and now holds a significant share of about 9.4 per cent of the total national gross domestic product (GDP). Hengyi Industries contributed around 55 per cent of the country’s total export in 2022. With the additional high-value petrochemicals production planned for the second phase, the contributions to Brunei Insya Allah will be further increased.”
He iterated that the Government of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam is committed to supporting the growth of the refining and petrochemical industry, with the aspiration of increasing its competitiveness in the market. This includes continuing to collaborate in building the capacity for sustainable growth while jointly working towards achieving our national climate goals.
Signing on behalf of the Petroleum Authority of Brunei Darussalam were Permanent Secretary (Energy) at the PMO Hajah Farida binti Dato Seri Paduka Haji Talib and Permanent Secretary (Infrastructure, Housing and Professional) at the Ministry of Development Ir Haji Amer Hishamuddin bin Pehin Orang Kaya Amar Pahlawan Dato Seri Setia Awang Haji Zakaria, while Acting Chief Executive Officer of BEDB Daniel Leong signed on behalf of BEDB. Hengyi was represented by its CEO Chen Lian Cai.
The event concluded with an exhibition showcasing Hengyi Industries and its Phase 1 operations including achievements through various programmes including Phase 2 opportunities. – James Kon