Zhejiang Hengyi Petrochemicals' Refinery and Aromatics Cracker Complex, Brunei Darussalam
Zhejiang Hengyi Petrochemicals (Zhejiang Hengyi) will construct an integrated refinery and aromatics complex at Pulau Muara Besar, Brunei. The approval for the complex was granted in February 2013.
The company earlier signed a land lease agreement for the project with the Brunei Economic Development Board (BEDB) in April 2012. The front end engineering and design (FEED) of the project is being undertaken by Sinopec Engineering.
The design and engineering plans for the project are expected to be completed by mid-2013, after which construction will commence. The plant site will cover an area of about 260ha. The project is expected to generate about 800 to 1,200 jobs.
UOP Honeywell has been awarded the contract to provide aromatics production technologies for the new plant. Aromatics are used in the production of polymers, plastics, resins and synthetic fibres, including polyester and nylon.
Details of Zhejiang Hengyi's project
The project will be implemented in two phases, with the first phase scheduled for completion in 2015.
The first phase of the project will enable the complex to produce 135,000 barrels per day of crude and condensates, 1.5 million tonnes per annum (mtpa) of diesel, 400,000tpa of gasoline, 1.0mtpa of jet A-fuel, 1.5mtpa of naphtha cracker, 1.5mtpa of paraxylene and 500,000tpa of benzene.
The second phase of the project will involve the expansion of the refinery to introduce new units for the production of olefins. It will add new units to produce one million tonnes per year of paraxylene and two million tonnes per year of mono ethylene glycol (MEG).
Construction works for the project will include the installation of an atmospheric and vacuum distillation unit with a capacity of eight million tonnes per year, a hydrocracking unit with a capacity of a 2.2mtpa, an aromatic complex unit with a capacity of 1.5mtpa, a diesel hydrogenation unit with a capacity of 1.5mtpa and a kerosene hydrogenation unit with a capacity of one million tonnes per year.
Other project activities will involve the construction of docks, a tank field, a power station and a sea water desalination facility.
Feedstock for the refinery and aromatics cracker complex
Crude oil, which will be used as feedstock, will be obtained from a number of sources. One third of the supply is expected to come from Brunei, one third will be imported from Qatar and the other third will come from other sources.
The supply of about 2.75mtpa of crude oil for the project and purchase of the refinery products from the complex will be handled by Brunei Shell Petroleum (BSP), Brunei Shell Marketing and Zhejiang Hengyi for a period of 15 years under a non-binding memorandum of understanding (MoU) signed between them.
Financing for Brunei's chemical complex
The construction of the complex is expected to require an investment of $4.32bn. Zhejiang Hengyi will spend $1.5bn from its own fund sources, while the remaining $2.82bn will be obtained through bank loans. It is currently the largest overseas investment by a privately-owned Chinese firm. The project is estimated to generate revenue of about $10bn per annum.
Honeywell's UOP technologies at the facility
Certain UOP technologies of Honeywell will be incorporated at the aromatics production plant. Its technologies will be implemented at a hydrocracking unit. A UOP CCR Platforming unit with a capacity of 3.3mtpa and a UOP Parex unit with a capacity of 1.5mtpa will be installed.
The hydrocracking unit will use the UOP Unicracking process to upgrade several feedstocks to lighter transportation fuel products. The platforming unit will use the UOP CCR Platforming process to convert low-quality naphtha to benzene, toluene and xylene (BTX), which are used in the production of plastics. These processes specifically enable the increase of hydrogen content in the refinery products.
UOP's Parex process, on the other hand, will be used in the Parex unit to recover paraxylene from mixed xylenes and offer high on-stream efficiency. In addition, UOP Isomar, UOP Tatoray and UOP ED Sulfolane processes will be gradually integrated into the complex.
Brunei is a small country (Sultanate) situated adjacent to Malaysia in the South China Sea.
Jurong Island plays host to most of the largest petrochemical companies in the world. There are more than 80 companies represented on the island.