<article><p class="lead">China's private-sector Hengyi Petrochemical is planning to add a 1.65mn t/yr naphtha cracker, 1.05mn t/yr polyethylene (PE) plant and 1mn t/yr polypropylene (PP) plant as part of a second phase at its refinery and integrated petrochemicals project in Brunei, with completion targeted for 2023.</p><p>Zhejiang province-based Hengyi has a 70pc stake in the project at Pulau Muara Besar, with the Brunei state owning the remaining 30pc. </p><p>The expansion will give Brunei its first polymers plant. Hengyi will use Univation's Unipol technology for the PE plant, which will be able to produce a broad range of high-density polyethylene and linear low-density polyethylene grades. It will use Lummus' Novolen technology for the new PP plant.</p><p>Hengyi is also planning to expand upstream refining capacity by 280,000 b/d and add more downstream petrochemicals units at Pulau Muara Besar. It plans to construct a 1.65mn t/yr ethylene cracker as well as 1.2mn t/yr mono-ethylene glycol, 800,000 t/yr benzene, 2mn t/yr paraxylene (PX), 2.5mn t/yr purified terephthalic acid (PTA) and 1mn t/yr polyethylene terephthalate (PET) plants in the second phase.</p><p>Hengyi <a href="https://direct.argusmedia.com/newsandanalysis/article/850638">commissioned</a> a 175,000 b/d refinery in the first phase of project in late 2019. The refinery can produce over 120,000 b/d of oil products, while the project's petrochemical complex can now produce up to 500,000 t/yr of benzene and 1.5mn t/yr of PX. The PX is consumed by Hengyi's PTA production in China. </p><p>The Brunei project is the largest overseas investment by a private-sector Chinese firm, Hengyi said.</p><p>Yisheng Petrochemical, a 50:50 joint venture between Hengyi and fellow private-sector firm Rongsheng Petrochemical, is China's largest PTA and PET bottle chip manufacturer. Yisheng operates around 13.6mn t/yr of PTA capacity in Ningbo, Dalian and Hainan, along with 2.6mn t/yr of PET bottle chip capacity in Dalian and Hainan. Its capacity will increase further with the imminent start-up of <a href="https://direct.argusmedia.com/newsandanalysis/article/2172080">new PTA plants</a> this year.</p><p class="bylines">By Yee Ying Ang and Suzi Shin</p></article>
