China-Brunei joint venture delivers 1st supply of refined fuel products

Source: Xinhua| 2020-05-18 22:59:19|Editor: huaxia

BANDAR SERI BEGAWAN, May 18 (Xinhua) -- Hengyi Industries Sdn Bhd, a China-Brunei joint venture, delivered on Monday its first supply of transportation fuels from Hengyi to its Brunei selling partner, marking the start of its supply of refined fuel products to Brunei's domestic market.

Three Brunei cabinet ministers including Minister at the Prime Minister's Office and Second Minister of Finance and Economy Haji Mohd Amin Liew, Minister of Development Haji Suhaimi and Minister of Energy Haji Mat Suny and Chinese Ambassador to Brunei Yu Hong attended a ribbon-cutting ceremony to officiate Hengyi's first supply of refined fuels (gasoline, diesel and jet fuel).

As part of Hengyi's commercial agreement with Brunei Shell Marketing (BSM) Company Sdn Bhd signed in September 2019, Hengyi will supply refined fuel products to BSM for domestic market distribution, which signifies a new milestone for the country's downstream industry with the extension of the domestic oil and gas value chain.

The refinery is also expected to reduce Brunei's dependency on imported fuel products while also generating products for export.

Chen Liancai, chief executive officer of Hengyi Industries said that Brunei's Sultan Haji Hassanal Bolkiah has called to hasten economic growth and realize Brunei Vision 2035, including through the materialization of foreign direct investment (FDI) projects within the nation.

"The local manufacture of a range of fuel products by Hengyi, one of the largest FDI companies in Brunei, contributes to the development and diversification of the nation's downstream energy sectors while supporting Brunei's national self-sufficiency," Chen told Xinhua.

Hengyi Industries is a joint venture between China's Zhejiang Hengyi Group and Damai Holdings, a wholly-owned subsidiary under the Brunei government's Strategic Development Capital Fund, owning 70 percent and 30 percent of the shares respectively.

With the help of its oil refinery and petrochemical project at Pulau Muara Besar (PMB), a 955-hectare industrial park on an island at the Brunei Bay, Hengyi will be supplying a total of 427,509 barrels of refined fuel products to BSM to meet the monthly domestic demand for petroleum products.

According to Chen, Hengyi's oil refinery and petrochemical project at PMB also opens up employment and business opportunities to local workers and businesses.

Since the start of its operations, Hengyi has directly employed hundreds of locals and this number is expected to increase further. Several more indirect employment opportunities have also been generated through various contractors and local service providers, he said. Enditem