Brunei plans development of large-scale gas-using industrial facilities

Brunei Darussalam has announced plans for the development of several large-scale industrial facilities intended to utilize the sultanate's vast natural gas reserves. The $ 3 bn of projects include a large gas-fired generating plant as well as an aluminium smelter and ammonia and methanol production facilities. All of the projects are scheduled for commercial operation from 2008.
The Brunei Economic Development Board said that the power plant would have 500 MW of capacity. However, a Board official told Power in Asia that the plant "could be more than 500 MW." He explained that the final capacity would depend on the outcome of detailed studies into the power needs of the proposed smelter and other facilities.

The Economic Development Board announcement covered the proposed development of a port complex as well as the industrial project. The port project would entail the investment of $ 1.5 bn in the development of a container handling operation at Pulau Muara Besar, with around 50 % of the investment to be sought from overseas.
The board said a feasibility study on the project was targeted for completion within six months to decide whether the project should go ahead. However, the bulk of the investment would be at Sungai Liang, adjacent to Brunei's gas production facilities, where the projects include the power plant.
Described only as "state of the art," but likely to be a combined cycle facility, the gas-fired plant would provide power for the planned 250,000 tpy aluminium smelter and ammonia and methanol production facilities. The board noted that $ 3 bn of investment would be required for the Sungai Liang projects, of which 90 % was slated to come from overseas.

The board added that detailed project proposals were scheduled for completion by the end of June 2003. A final decision would then be made on the feasibility of the investments by the end of 2003 in order to ensure that the various facilities were operational by 2008. An Economic Development Board official confirmed to Power in Asia that the power plant would almost certainly be built and operated by the private sector.
However, he noted that it had not been decided whether the generator would be bid out as a self-standing independent project or as part of an overall package, including the smelter and other industrial facilities, which would thus require bids for the plant as part of a consortium. He added that both options were being considered and that the final decision would depend on the outcome of the detailed studies.