Hengyi Industries

Hengyi Industries Sendirian Berhad operates an integrated refinery and petrochemical complex on Pulau Muara Besar in Brunei Bay. The venture combines Zhejiang Hengyi Group's majority ownership with Damai Holdings, an investment vehicle linked to the Brunei government's Strategic Development Capital Fund. Its development is closely associated with Brunei's effort to diversify an economy historically dependent on crude oil and natural-gas exports, and with the national Wawasan Brunei 2035 vision. The project originated in a 2011 memorandum of understanding between the Brunei Economic Development Board and Zhejiang Hengyi Group. The proposed complex was intended to process crude oil domestically, improve national fuel security, and establish a larger downstream industrial base. Pulau Muara Besar was selected because its location in Brunei Bay provides access to deep-water shipping, including very large crude carriers. Enabling infrastructure included the Pulau Muara Besar Bridge, which connects the industrial island with the mainland. Construction of the first phase began in 2017. The initial investment was reported at approximately US$3.445 billion, and the facility entered full commercial operation in November 2019. Phase 1 was designed around a refining capacity of 175,000 barrels per day and was reported to have supplied all of Brunei's domestic fuel requirements, reducing the country's reliance on imported fuels and output from its older, smaller refinery in Seria. The site operates as an integrated industrial complex rather than as a standalone refinery, linking crude processing with aromatics and other petrochemical production. The complex includes refinery units, petrochemical facilities, dedicated power generation, water desalination, storage and marine-loading infrastructure. Its deep-water jetty is designed to handle large oil tankers, while the on-site utilities support continuous industrial operations. Hengyi Industries International Pte Ltd, based in Singapore, serves as a commercial arm involved in raw-material sourcing and the marketing of refined products. A second development phase was formally launched in January 2026 after the project secured an investment package reported at US$13.6 billion. The expansion is planned to raise total refining capacity to about 20 million tonnes per year, equivalent to roughly 400,000 barrels per day, with completion targeted for late 2028. Its proposed facilities include a 1.65-million-tonne-per-year naphtha cracker, polyethylene and polypropylene units, and expanded purified terephthalic acid and polyethylene terephthalate production. If completed as planned, the project would add polymer manufacturing to Brunei's industrial base and move the complex further toward higher-value downstream chemicals. Hengyi Industries also presents workforce development and environmental programs as part of its Brunei presence. Its scholarship partnership with Universiti Brunei Darussalam and Zhejiang University supports chemical-engineering education, while cooperation with the Institute of Brunei Technical Education is intended to develop refinery operators and maintenance personnel. Project SINAR, announced in 2024, involves a planned solar installation covering 36 hectares on Pulau Muara Besar. The company has also undertaken tree-planting and reforestation activities in Brunei. The complex is therefore both a commercial refining and petrochemical operation and a central component of Brunei's industrial-diversification strategy.

Hengyi Industries developed from cooperation between Brunei's economic-development authorities and Zhejiang Hengyi Group. In 2011, the Brunei Economic Development Board and Zhejiang Hengyi Group signed a memorandum of understanding covering a refinery and aromatics project. The initiative reflected Brunei's desire to retain more value from its hydrocarbon resources and reduce dependence on exports of unprocessed oil and gas. A downstream refinery and petrochemical complex was also intended to strengthen domestic fuel security and create a platform for industrial diversification. Pulau Muara Besar was selected as the project site because the island has access to Brunei Bay and deep water suitable for large crude-oil carriers. The development required substantial public infrastructure before the industrial complex could operate. Among the most significant projects was a 2.7-kilometre bridge connecting Pulau Muara Besar with the mainland. Construction of the bridge was carried out by China Harbour Engineering Company, and the bridge was completed in 2018 after reported investment of approximately US$204 million. The first phase of the refinery and petrochemical complex began construction in early 2017. The phase represented an investment reported at about US$3.445 billion. The resulting facility was designed with refining capacity of 175,000 barrels per day and integrated refinery, aromatics, storage, marine, utility, and support infrastructure. It reached full commercial operation in November 2019. The operation became an important part of Brunei's domestic energy system because it was reported to supply the country's fuel requirements, replacing a significant portion of the previous reliance on imported fuels and production from the smaller Seria refinery. The ownership structure gives Zhejiang Hengyi Group a 70 percent stake, while Damai Holdings holds 30 percent. Damai Holdings is associated with Brunei's Strategic Development Capital Fund. The venture consequently combines a Chinese industrial partner with a Brunei government-linked investment interest. Its commercial activities extend beyond the domestic market. Hengyi Industries International Pte Ltd, located in Singapore, handles international sourcing and product marketing, supporting the movement of crude feedstock and refined or petrochemical products through regional markets. The Pulau Muara Besar site functions as a self-contained industrial park. It has dedicated power-generation capacity, desalination facilities, and a deep-water jetty reported to be capable of receiving oil tankers of up to 300,000 tonnes. The integrated configuration is intended to improve operating efficiency by connecting crude processing with petrochemical conversion and downstream product manufacture. Existing and associated product areas include refined petroleum products, aromatics, purified terephthalic acid, and polyethylene terephthalate. Hengyi's Brunei activities also include workforce-development programs. The company has worked with Universiti Brunei Darussalam and Zhejiang University on fully funded chemical-engineering scholarships since 2014, and it has cooperated with the Institute of Brunei Technical Education on vocational training for refinery operators and maintenance personnel. These programs support the stated objective of increasing the participation of Bruneian workers in technical and professional positions. The company has also reported reforestation projects and a long-term tree-planting commitment in Brunei. In 2024, Hengyi launched Project SINAR, a planned solar-panel installation covering 36 hectares on Pulau Muara Besar. The project was presented as a means of offsetting part of the complex's emissions and supporting Brunei's renewable-energy objectives. By late 2025, the company was reported to have completed its seventh reforestation project in cooperation with Bank Islam Brunei Darussalam. In January 2026, Hengyi Petrochemical announced the full launch of a second phase of development after securing a reported US$13.6 billion investment package, including financing from Brunei Islamic Bank and government tax-incentive certificates. The planned expansion is targeted for completion by late 2028. It is intended to raise total refining capacity to approximately 20 million tonnes per year, or about 400,000 barrels per day. The new phase includes a 1.65-million-tonne-per-year naphtha cracker, polyethylene and polypropylene production, and expanded PTA and PET lines. The proposed polymer facilities would represent a new manufacturing segment for Brunei and would deepen the complex's integration into the regional chemicals value chain.

• 2026

  Phase 2 expansion launched

  [1]Hengyi Industriesen.wikipedia.org

  Hengyi announced a planned US$13.6 billion expansion featuring additional refining, cracker, polymer, PTA, and PET capacity.

• 2024

  Project SINAR announced

  [1]Hengyi Industriesen.wikipedia.org

  The company announced a planned 36-hectare solar installation at Pulau Muara Besar.

• 2019

  Phase 1 enters commercial operation

  [1]Hengyi Industriesen.wikipedia.org

  The complex reached full commercial operation with reported refining capacity of 175,000 barrels per day.

• 2018

  Pulau Muara Besar Bridge completed

  [1]Hengyi Industriesen.wikipedia.org

  The 2.7-kilometre bridge linking the industrial island to the mainland was completed, improving access to the project site.

• 2017

  Phase 1 construction begins

  [1]Hengyi Industriesen.wikipedia.org

  Construction of the first refinery and petrochemical phase began on Pulau Muara Besar.

• 2014

  Chemical-engineering scholarship partnership

  [1]Hengyi Industriesen.wikipedia.org

  Hengyi began a scholarship partnership involving Universiti Brunei Darussalam and Zhejiang University to support chemical-engineering education.

• 2011

  Initial refinery and aromatics agreement

  [1]Hengyi Industriesen.wikipedia.org

  The Brunei Economic Development Board signed a memorandum of understanding with Zhejiang Hengyi Group to develop a refinery and aromatics project.

An integrated refinery and petrochemical platform supporting Brunei's fuel self-sufficiency, export development, and economic diversification.

• Refining · 2019

  Refined petroleum products

  The Phase 1 complex processes crude oil into fuels and other refined products for Brunei and external markets. Its reported 175,000-barrel-per-day capacity made it a major source of domestic fuel supply and reduced the country's reliance on imported refined petroleum.

• Petrochemicals · 2019

  Aromatics

  Aromatics production forms part of the integrated petrochemical configuration developed alongside the refinery. These chemical feedstocks can support downstream manufacturing and allow the complex to capture value beyond the sale of raw crude oil.

• Petrochemicals

  Purified terephthalic acid

  Purified terephthalic acid is included among the complex's downstream petrochemical product areas. The planned second-phase expansion is intended to increase PTA integration and connect refinery-derived feedstocks with polyester-related chemical production.

• Petrochemicals

  Polyethylene terephthalate

  Polyethylene terephthalate production is part of Hengyi's downstream petrochemical scope. Expansion plans call for additional PET capacity, strengthening the complex's role in the production of materials used in packaging, fibers, and related applications.

• Polymers · 2026

  Polyethylene and polypropylene

  The Phase 2 plan includes Brunei's first polymer production facilities, with polyethylene and polypropylene units linked to a proposed 1.65-million-tonne-per-year naphtha cracker. These products would broaden the country's industrial output beyond fuels and basic petrochemical feedstocks.

• 2024Project SINAR

  Brunei

  Project SINAR is a planned solar installation covering 36 hectares at Pulau Muara Besar, intended to contribute to emissions reduction and Brunei's renewable-energy targets.

  Source
• 2014Hengyi–UBD–ZJU Scholarship Partnership

  Brunei

  A higher-education program with Universiti Brunei Darussalam and Zhejiang University provides fully funded chemical-engineering study opportunities intended to build a local technical workforce.

  Outcome. Reference material reports that more than 200 students had participated by 2025 and that 135 had joined the plant as full-time employees.

  Source
• Brunei reforestation program

  Brunei

  Hengyi has reported a long-term commitment to plant trees across 200 hectares in Brunei and has conducted reforestation activities with local partners, including Bank Islam Brunei Darussalam.

  Outcome. The company was reported to have completed its seventh reforestation project by late 2025.

  Source

• 2026

  Launch Phase 2 expansion and downstream polymer integrationGeneration change

  Background

  The company sought to expand refining scale and move Brunei further into higher-value petrochemical and polymer manufacturing.

  Action taken

  Hengyi announced a planned expansion including a 1.65-million-tonne-per-year naphtha cracker, polyethylene and polypropylene plants, and expanded PTA and PET capacity.

  Aftermath

  Completion was targeted for late 2028, with planned total refining capacity of approximately 20 million tonnes per year, or about 400,000 barrels per day.

  Phase 2 investment package. US$13.6 billion (Investment package announced in January 2026)

  Source

• 2017

  Proceed with the Phase 1 integrated refinery and petrochemical complexStrategy

  Background

  Brunei sought to reduce dependence on crude-oil and natural-gas exports, improve domestic fuel security, and establish downstream industrial capabilities.

  Action taken

  Hengyi and its Brunei partner developed the Pulau Muara Besar complex with refinery, aromatics, marine, utility, and logistics infrastructure.

  Aftermath

  The first phase entered full commercial operation in 2019 and was reported to provide all of Brunei's domestic fuel requirements.

  Phase 1 investment. US$3.445 billion (Reported investment for Phase 1, announced before commercial operation)

  Source

1. 1Hengyi Industriesen.wikipedia.org