MOSCOW (MRC) — Privately-run Chinese company Hengyi Group has started a trading office in Singapore to buy crude and trade oil products from its USD3.4 B Brunei project, company officials said on Monday, as per Hydrocarbonprocessing.
The office will also handle third-party trading and use derivatives to hedge risks, said Michael Zhang, managing director of the trading arm Hengyi Industries International Pte Ltd. The refinery-petrochemical project will be mechanically completed by the end of 2018 and start operations in the Q1 2019, Zhang said.
The project, at Brunei's Pulau Muara Besar island, includes a 175,000-bpd refinery that will produce gasoline, diesel and jet fuel. The complex also houses an aromatics plant to produce 1.5 MMtpy of paraxylene (PX) and 400,000 tpy of benzene.
Hengyi also signed in September a memorandum of understanding (MoU) with Brunei's Economic Development Board to expand the project in a second phase.
The expansion includes a 14 MMtpy (281,150 bpd) refinery and units to produce 1.5 MMtpy of ethylene and 2 MMtpy of PX, the company said last month.
The second phase is estimated to cost USD12 B, Qiu Jianlin, chairman of Zhejiang Hengyi Group, told the industry at the Singapore office's opening ceremony on Monday.