Downstream Oil and Gas

With nearly 90 years’ experience in the oil and gas sector, Brunei Darussalam has developed expertise and strength particularly in upstream and liquefied natural gas (LNG). In comparison, the sector’s downstream industries are still in its early stages in terms of development and maturity.

In May 2010, a methanol plant was commissioned and started exporting its products within the region. Future plans include further developing the downstream industries to generate economic growth, create employment for locals and promote other spin-off industries.

A final investment decision (FID) has been announced for the construction of a 3,900 metric tonnes per year fertiliser (urea) plant, with its start-up targeted for 2019. Meanwhile, construction of an integrated refinery and petrochemical complex at Pulau Muara Besar (PMB) has started and is scheduled for completion by end of 2019. The facility will be producing refined petroleum products such as gasoline, diesel and jet fuel, as well as downstream petrochemicals such as benzene and paraxylene.

Brunei Darussalam’s current target for downstream economic output is to achieve B$5 billion per year by 2035. With this in mind, Brunei Darussalam welcomes foreign direct investment (FDI) in the downstream sector, including those that can create cross-sectoral opportunities by utilising feedstock from existing and future petrochemical plants to manufacture value-added derivatives, which can subsequently lead to further spin-off opportunities. For example, methanol, ammonia and urea (from the country’s existing methanol plant and future ammonia-urea plant) can be considered as feedstock to manufacture derivatives such as methylamine, formaldehyde, polyoxymethylene (POM), etc., which can promote opportunities in the manufacturing of wood-based products, tableware, plastics, textiles, etc.

To support the development of potential downstream industries, two dedicated industrial sites have been allocated and reserved, namely Sungai Liang Industrial Park (SPARK) and Pulau Muara Besar (PMB) Industrial Park. These sites can provide new projects with close proximity to existing and future petrochemical plants so as to achieve cross-industry synergy and optimise logistical efficiency.