By M K Anwar

Bandar Seri Begawan - Yet another milestone in the country's march towards industrialisation was achieved yesterday with the formation of a joint venture between Brunei National Petroleum Company Sdn Bhd (PetroleumBRUNEI) and two major Japanese companies, Mitsubishi Gas Chemical Company Inc and ITOCHU Corporation to build a Methanol plant at Sungai Liang Industrial Park in Belait District.

The plant is expected to take shape in 2008.

A signing ceremony took place yesterday at. the Royal Berkshire Hall, JPCC in the presence of the Minister of Industry and Primary Resources, YB Pehin Dato Dr Hj Awang Ahmad bin Hj Jumat, who was also the guest of honour at the event.

In a speech by the Chairman of PetroleumBRUNEI and also Minister of Energy at the Prime Minister's Office, YB Pehin Dato Hj Awang Yahya bin Begawan Mudim Dato Paduka Hj Bakar, he noted that the feasibility studies and negotiations with the relevant agencies on the methanol plant project have concluded with the signing of the Joint Venture Agreement.

He said PetroleumBRUNEI is proud to play an active role in pursuit of the nation's vision towards industrialisation.

The minister added that at the same time they are also aware of the potential in creating spin-off industries and the promises it brings to the people of Brunei.

Furthermore, he added that PetroleumBRUNEI believes that only by achieving a balance between commercial gains and meaningful social economic benefits to the country can there be a win-win outcome in the project.

Earlier, in the opening remarks by Acting CEO of PetroleumBRUNEI, Awang Mohammad Reduan bin Hj Mohd Yusof, he said the signing of the Joint Venture Agreement marks the start of a series of undertakings necessary for the development of the country's first methanol plant.

He pointed out that the collaborative efforts for the successful development of the methanol plant would place Brunei in the map of global methanol industry.

Describing what methanol is, the Acting CEO said it is a clear liquid chemical product produced mainly from natural gas and is a primary material for the chemical industry.

He stated that with more metal products being replaced by tough, durable and lightweight substitutes, there is an increasing global demand for methanol derivatives for use by industries as base product for producing a long list of end products.

The signing of the Joint Venture Agreement cemented the establishment and incorporation of a Joint Venture Company in Brunei called the Brunei Darussalam Methanol Project Consortium with Mitsubishi Gas Chemical Company Inc (MGC) holding an equity interest of 50 per cent while PetroleumBRUNEl and ITOCHU Corporation (ITC) each holding a 25 per cent stake.

A joint statement from the consortium stated that the agreement also provides for the effective management of the Joint Venture Agreement and its tasks in securing the necessary arrangements and agreements crucial for the successful development of the Brunei Darussalam Methanol Plant and its targeted start of commercial operations.

Also signed yesterday was a Memorandum of Understanding for the Methanol Marketing Agreement between the Brunei Darussalam Methanol Project Consortium and MGS who has agreed to be the sole off taker of the produced methanol from the Brunei Methanol Plant.

The MOU is aimed at ensuring the marketing and sale of the Brunei produced Methanol is conducted in a favourable manner and to allow the marketing and sales knowledge of Methanol to be imputed through the active engagement of PetroleumBRUNEI in the marketing and sales processes.

Another important MOU signed was the gas sales and supply agreement between Brunei Shell Petroleum Company Sdn Bhd (BSP) and,the Brunei Darussalam Methanol Project Consortium. With the successful completion of the agreement next year, BSP intends to supply up to half a trillion cubic feet of gas in a 22-yearperiod.

Dr Grahaeme Henderson, Managing Director of BSP, in a speech said that this is another historic milestone for BSP as they continue to be a partner of Brunei for the last 75 years.
He said BSP's role in the project would be that of the supplier of natural gas that is required as the feedstock to produce methanol.

The signing ceremony of the three agreements yesterday afternoon was attended by Deputy Ministers, Permanent Secretaries and Heads of Departments from various government ministries as well as members of the diplomatic corps and those from the business sector. -- Courtesy of Borneo Bulletin