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Hengyi Petrochemical inks crude oil supply, products distribution deals with local companies

October 09/2019

MOSCOW (MRC) -- Hengyi Industries Sdn Bhd, a joint petrochemical venture between China and Brunei, on Wednesday inked commercial agreements with Brunei Shell Petroleum Company (BSP) and Brunei Shell Marketing Company (BSM) for the supply of crude oil to Hengyi and selling of fuel products in Brunei market, said Xinhuanet.

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. They own 70 percent and 30 percent of the shares respectively.

Farida Talib, BSP's commercial director, said in her speech at the signing ceremony that the new commercial agreements would allow for improvements within the domestic oil and gas value chain with BSP supplying crude oil to Hengyi's oil refinery and petrochemical project at Pulau Muara Besar (PMB), a 955-hectare industrial park on an island at the Brunei Bay.

Hengyi in return will supply refined fuel products to BSM for distribution to the local market. BSM said this will meet domestic product demand, support downstream retail and industrial development in Brunei and enable significant associated economic benefits.

Chen Liancai, CEO of Hengyi Industries, also highlighted that the agreements serve another milestone for Hengyi Industries' petrochemical project.

Chen said that Hengyi will purchase part of its needed crude oil from BSP, and supply petroleum products to BSM including gasoline, diesel and jet oil. Hengyi will also work closely with BSJV (Brunei Shell Joint Ventures) companies to ensure smooth transition and supply of petroleum products to the domestic market from the current refinery to its new refinery at PMB.

As MRC informed earlier, in September Hengyi Industries produced qualified petrochemical (PC) products at its new refinery and petrochemical complex at Pulau Muara Besar in Brunei. The project includes a 160,000 barrels/d crude oil refinery, a 1 M tonnes/y aromatics facility and a 500,000 tonnes/y benzene unit.

Hengyi Petrochemicals is targeting to start up its new 1.5m tonne/year PX unit in late October.

Paraxylene is a raw material for the synthesis of terephthalic acid (TFA) - an intermediate for the production of polyethylene terephthalate (PET).

As per ICIS-MRC PRice Report, Plant of New Polymers Senege, one of the Russian producers of PET chips,  shut production of polyethylene terephthalate (PET) for scheduled repairs on 1 October. According to a source in the company, the shutdown will take about a month. The exact date of the completion of the turnaround was not reported. Senege cut the spot prices to the level of Rb87,000-89,000/tonne CPT Moscow, including VAT this week. Spot prices of PET from the producer in September were at the level of Rb87,000-89,000/tonne CPT Moscow, including VAT.

Hengyi Industries is a joint venture of Zhejiang Hengyi Group (70%) and Damai Holdings, a subsidiary of the Brunei government's Strategic Development Capital Fund (30%).
Author:Anna Larionova
Tags:benzene, paraxylene (PX), propylene, ethylene, Hengyi Petrochemical, Brunei.
Category:General News
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