Brunei Soon To Have First Gas-Based Methanol Plant
By Waleed PD Mahdini

Bandar Seri Begawan - Brunei Darussalam yesterday signed a landmark agreement that will make the Brunei methanol project a step closer to reality.

"All parties are committed to making a final investment decision by next year," said the chief executive officer of PetroleumBRUNEI, Mohd Ja'afar Awang Bakar, during the signing ceremony.

The memorandum of understanding signed between PetroleumBRUNEI and the Japan Bank for International Cooperation was for cooperation on the project's financing as well as knowledge transfer.

Witnessing the MOU signing was the Second Minister of Fi nance, Pehin Orang Kaya Laila Setia Dato Seri Setia Abdul Rahman, who is also the deputy chairman of PetroleumBRUNEL

The Brunei methanol project had generated a partnership between PetroleumBRUNEI, Mitsubishi Gas Chemical Company Incorporated of Japan, and Itochu Corporation as shareholders, as well as Japan Bank for International Cooperation, Mohd Ja'afar said, adding that the shareholders were currently in discussions with JBIC on the financing of the methanol project.

"This project is part of our nation's pursuit for further industrial development and it will be the first gas-based petrochemical plant in Brunei," he said.

The project was conceived as a result of the economic partnership agreement between the governments of Brunei and Japan. His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam highlighted this fact with former Japanese Prime Minister Junichiro Koizumi during an East Asia Summit last December, which culminated in yesterday's signing for the realisation of the Sultanate's first methanol plant.

"It is a key project that is conducive to the economic and industrial diversification of Brunei," said senior executive director of JBIC. Junichi Kondo.

The Brunei Methanol Consortium with the Mitsubishi Gas Chemical Company Inc holds an equity interest of 50 per cent, while PetroleumBRUNEI and Itochu Corporation each share a 25 per cent stake.

According to the Brunei Economic Development Board's website, the mechanical construction of the methanol plant at the Sungai Liang Industrial Park in the Belait District is expected to be completed in early 2009 and the start of the commercial production of the methanol plant expected to begin sometime later that year, just 36 months from the start of the project.

The plant will have a capacity of producing 2,500 tonnes per day or 850,000 tonnes annually. With a total investment of US$288 million, the methanol plant will produce resin, adhesive, plastics, paint, sheet, solvent, and gasoline additives as spin-off products. -- Courtesy of The Brunei Times

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