OREANDA-NEWS. July 08, 2011. China's Zhejiang Hengyi Group has received approval from the Brunei government to build a USD 2.5 billion oil refinery and aromatics cracker complex at Pulau Muara Besar, the Brunei Economic Development Board said.

The complex, which will be located on a 260 ha site, will comprise a 135,000 b/d refinery and petrochemical units.

Front-end engineering design work will be undertaken by Sinopec Engineering, according to the statement. The company will undertake a detailed engineering study over the next 12 months before construction of the plant begins.

"The first phase of the refinery and aromatics cracker project will comprise the production of petroleum products such as gasoline, diesel and jet A-fuel, as well as paraxylene and benzene which are mainly used in textile production," the statement said.

Once phase one is successfully completed, Zhejiang Hengyi Group plans to invest a further USD 3.5 billion in the complex for the production of olefins.

Zhejiang Hengyi Group is a private Chinese group whose main businesses are the production of purified terephthalic acid, polyester spinning and chemical fiber.