Spark gets new locator: $3.37 billion petrochem complex

SIX downstream plants with an aggregate investment of US$2.8 billion ($3.37 billion) will be built at the Sungai Liang Industrial Park (Spark).

His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam has consented to the construction of the petrochemical plants which will comprise the integ-rated gas-based petrochemical complex.

Developed and managed by the Sungai Liang Authority (SLA), the six downstream plants namely ammonia, urea, di-ammonium phosphate, ammonium sulphate, melamine and caprolactam, will produce ingredients for the production of fertilisers, textiles as well as plastics.

The project will be undertaken by Mitsui Consortium, which comprises Mitsui and Co Ltd, and Mitsui Chemicals Inc. The Brunei Economic and Development Board (BEDB) said in a press release that the Mitsui Consortium followed an international 'Request for Proposals' process conducted in November 2009, for the utilisation of 0.5tcf (trillion cubic feet) of Brunei's natural gas and evaluated by consultancy firm Wood Mackenzie.

The Mitsui Consortium has offered a local equity participation of up to 49 per cent in the project.

"As a major part of the due diligence process, the BEDB, together with the Energy Department of the Prime Minister's Office and the SLA, recently conducted a visit to Mitsui and Co Ltd, in Tokyo and also a site visit to Mitsui Chemical's ammonia/urea and melamine plants in Osaka, Japan," the BEDB said.

To show support for the Sultanate's aspiration in achieving self-sufficiency in food, a portion of the production of agricultural fertilisers will be reserved at no cost for His Majesty's Government, for domestic consumption, the BEDB said.

The project is expected to create about 470 jobs. "By incorporating new production technologies, the project... will take approximately 12 months for detailed engineering study before the construction of the plants commences." The negotiation for the gas supply is expected to be carried out concurrently.

"In addition to creating local employment, the consortium will also be offering postgraduate scholarships for local Bruneians to upgrade their technical skills in relevant fields," the BEDB said. The SLA confirmed that the establishment of Brunei's second petrochemical project on a 90-hectare site at Spark, will "significantly contribute to Spark's continuous development", bringing the occupancy rate to approximately 75 per cent of Spark's leasable land. "Subject to further availability of natural gas, other gas-based petrochemical proposals are also being evaluated for consideration."

Dato Paduka Hj Ali Apong, Deputy Minister at the Prime Minister's Office, and chairman of the BEDB, said the BEDB will "continue to work very closely with Mitsui Consortium and other relevant stakeholders" towards the successful implementation of the project.

"It is hoped that the successful development of the project will crystallise Brunei's ambition to be a world-class petrochemical hub," Dato Hj Ali said, adding that the Mitsui Consortium is also committed to introducing key Japanese companies to Brunei, particularly in the food and pharmaceutical sectors.The Brunei Times