Zhejiang Hengyi gets approval to build oil refinery in Brunei

China’s privately owned Zhejiang Hengyi Group Co., a supplier of raw materials for textiles, has received approval to build a 135,000 barrel per day oil refinery at Pulau Muara Besar in Brunei. The company has a strategic partnership with state-owned China Petroleum & Chemical Corp. or Sinopec. The detailed engineering study is scheduled for completion in 12 months, according to the Brunei Economic Development Board. Construction is expected to take three years, at a cost of US$2.5 billion. Local equity participation of up to 30% is reported. The new refinery will process crude oil and condensate into gasoline, diesel and jet fuel, in addition to paraxylene and benzene, which are used in textile production. (July 4,2011)