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Hengyi's Phase 2 Petrochemical Project: A Catalyst for Local Business Opportunities



[Brunei Darussalam, 18 November 2023] – The Petroleum Authority of Brunei Darussalam, the Brunei Economic Development Board (BEDB) together with Hengyi Industries Sdn Bhd. is proud to announce the launch of Hengyi’s Phase 2 petrochemical project that surpasses the investment scale of Phase 1. The Phase 2 project aligns seamlessly with the national vision of Wawasan 2035 and the Economic Blueprint goals, propelling economic growth and fostering job opportunities.


Hengyi's commitment to the Bruneian community goes beyond the production of petrochemicals; it creates a robust ecosystem of business opportunities for local enterprises. The success stories witnessed during Phase 1 operations serve as a testament to the potential for flourishing collaborations; whereby a total of 15 Local companies have provided services as main contractors during Phase 1 operations and turnaround. As Phase 2 unfolds, Hengyi anticipates additional business opportunities for locals, mirroring the diverse range seen during Phase 1.  


Phase 1-success stories:

 

  • Our local businesses are proven capable in delivering services during Phase 1 operations and turnaround which are categorized as complex services and involves high risk and high technology, such as machinery and equipment inspection and turnaround maintenance services.

  • Among other services which require technical expertise and experience, complex and/or resource intensive and involves medium level of investment/risk successfully provided by our local businesses include hazardous waste treatment, heavy vehicles maintenance, and construction support and maintenance.

  • Providing services to the crude supply vessels arriving at the Pulau Muara Besar (PMB) facility. This strategic collaboration not only underscores the mutually beneficial relationships formed by Hengyi but also displays the potential for local companies to engage in critical sectors of the petrochemical supply chain.

  • The refining of fuels. This partnership not only signifies a strategic alliance between major players in the energy sector but also paves the way for increased synergy and economic growth within the region.

  • Several local companies also utilised fly ash (a by-product from Hengyi’s power plant) as feedstock for cement and concrete products.  

  • Other success stories included outsourcing catering, regular maintenance and cleaning works to local companies, and security services to private security companies. This approach not only bolsters the local economy but also fosters a culture of skill development and knowledge transfer within the community.


As the Phase 2 project progresses, Hengyi anticipates additional business opportunities that will not only contribute to the economic landscape of Brunei but also act as a catalyst for job creation, skill development, and sustained growth. Hengyi remains steadfast in its commitment to foster mutually beneficial collaborations, further solidifying its role as a cornerstone of economic development in the region.


Some of the opportunities for Phase 2 include:


Phase 2 project will open opportunities for collaborative and strategic partnerships in fostering local business development through effective transfer of knowledge in reaping the benefits with regards to improved technology, system capability and managerial and technical skills to be integrated into the domestic market. 

 

During construction, several business opportunities are identified under the Implementation Agreement such as land surveying, site clearance, waste management, environmental health services, marine geotechnical investigation, qualified personnel services, catering and canteen services, cleaning services, security services, medical services and corporate services. The Phase 2 project leverages on the Local Business Development directives to help fulfill the growth of local businesses and demonstrates Hengyi’s commitment to build sustainable relationships with local businesses and service providers.


When Hengyi transitions into Phase 2 of its operations, local businesses will have the opportunity to provide services in accordance with the Local Business Development (LBD) Directives for Oil and Gas Industry including land and marine transportation, material handling, maintenance of onshore facilities, after-sale maintenance services for equipment, inspection, construction services including civil works, waste management and corporate services  By committing towards a collaborative ecosystem, Phase 2 is expected to be a catalyst for driving economic growth, creating job opportunities and empowering local businesses.

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