MOU Signed To Build First Methanol Plant

Bandar Seri Begawan - The signing yesterday of the Memorandum of Understanding between PetroleumBRUNEI's joint venture with the Mitsubishi Gas Chemical Company and the Itochu Corporation, will enable the venture to receive a loan from the Japan Bank for International Cooperation.

Estimated to cost US$288 million, Brunei's first gas-based petrochemical plant will commence construction in the first half of 2007, with the mechanical completion scheduled two years later.

Commercial operations are expected the following quarter. Methanol production capacity is expected to reach some 912,500 metric tonnes annually. Brunei Shell Petroleum has earlier agreed to supply up to half-a-trillion cubic feet of gas over a 22-year period.

The methanol project will also generate more than 600 jobs as well as produce other spin off industries such as small medium enterprises for mechanical and general support services that commonly come with huge engineering projects. According to the Brunei Economic Development Board, some 2,000 projects are also expected to contribute to the building of the plant. -- Courtesy of The Brunei Times

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