Brunei Methanol Company

Brunei Methanol Company (BMC) is a national pioneer petrochemical facility situated at the Sungai Liang Industrial Park (SPARK) in Sungai Liang, Brunei jointly owned by Japan's Mitsubishi Gas Chemical Company Inc. (50%), Japanese trading house ITOCHU Corporation (25%) and Mirkhas Sdn Bhd (25%), a company incorporated under the purview of the Strategic Development Capital Fund, a trust sub-fund of the Government of Brunei Darussalam.

BMC’s plant has a daily production capacity to produce up to 2,500 metric tonnes or 850,000 tonnes of Grade AA methanol per year, which is converted from natural gas supplied by Brunei Shell Petroleum Sdn Bhd. This project aligns with the goals of Wawasan Brunei 2035, aiming to diversify Brunei Darussalam’s economy and add value to the Oil and Gas sector by strengthening the downstream economy, reducing dependence on the oil and gas industry and ensuring the economy is sustainable for the future generations.

History
A Joint Venture (JV) Agreement was signed between the Mitsubishi Gas Chemical Company, Mirkhas Sdn Bhd (formerly known as PB Petrochemical Company Sdn Bhd) and Itochu Corporation on 21 November 2005. The Company was incorporated as a private limited company on 13 March 2006.

The construction of the Company’s methanol manufacturing plant was financed under Japan Bank for International Cooperation (JBIC), with participation from several other commercial bank lenders on 5 May 2007. This marks the first international project financing loan that JBIC has provided for a downstream project in Brunei Darussalam. BMC completed the full repayment of its project financing loan on 14 December 2022, paving the way for the Company to embark on new project endeavors.

Groundbreaking for the methanol plant project began on 30 November 2007, signifying the start of plant construction. Mitsubishi Heavy Industries Ltd was responsible for the engineering, procurement, and construction (EPC) of the methanol plant.

The foundation laying ceremony was officiated by His Royal Highness the Crown Prince Haji Al-Muhtadee Billah ibni His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah on 11 February 2008. Construction works of the methanol plant was completed in 2009, a landmark step towards enhancing Brunei’s social and economic landscape while also creating employment opportunities.

The USD600 million 16-hectare plant was officially inaugurated by His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, the Sultan and Yang Di-Pertuan of Brunei Darussalam on 25 May 2010.

Natural Gas Supply and Commercial Operations
BMC currently obtains its natural gas supply from Brunei Shell Petroleum Sendirian Berhad for its methanol production, in a 21-year gas sales agreement.

The first drop of methanol was witnessed on 27 April 2010, marking the start of Brunei Darussalam’s utilisation of its own natural resources to produce value-added products.

Products and Supply Destinations
Methanol has a huge demand in Asia, and the location in Brunei Darussalam gives the methanol plant the strategic advantage to supply methanol in the Asian market. The grade AA methanol produced by BMC is mainly supplied to markets in Northeast Asia and Southeast Asia which includes China, Japan, South Korea, Taiwan, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, India, and recently, Brunei Darussalam.

Key Uses of Methanol
The Grade AA methanol is a key product for the chemical and petrochemical industry in the production of Acetic Acid (solvents), MTBE (octane enhancer), Formaldehyde (resins, adhesives) and others.

Methanol Export Facilities (Offshore)
BMC’s Single Point Mooring (SPM) facility serves as a pivotal hub for exporting methanol, ensuring seamless cargo transfer operations. Darussalam Enterprise (upon novation from the Brunei Economic Development Board) provides the methanol export facilities under a 22-year commercial Lease Agreement.

The first international shipment of methanol was to Korea on 12 May 2010, via BMC’s methanol export facilities (offshore) marking Brunei Darussalam’s historic entry into the international markets for methanol exports.

Domestic Loading Facilities (Onshore)
On 29 November 2023, BMC launched its Domestic Loading Facility (Onshore), a facility established to provide methanol accessibility within Brunei Darussalam’s local market. Following the launch, BMC completed its first onshore product methanol loading, representing the first sale of methanol within Brunei’s domestic market.

This recent development in methanol supply is a key aspect of the cooperation agreement with the Brunei Economic Development Board (BEDB) for BMC to support national downstream businesses as part of the diversification efforts.

Safety Culture
On 25 June 2023, BMC surpassed nine million manhours without lost time injury (LTI) which underscores BMC’s dedication to regulatory compliance and strict adherence to the best safety practices, aimed at fostering a zero-incident workplace.

BMC chaired the Lumut Liang Industrial Area-Integrated Emergency Response Committee (LLIA-IERC) from 2018 to 2023, and during the tenure of its chairmanship, BMC tested its emergency response readiness in collaboration with stakeholders and agencies to assess its readiness for any potential incidents or emergency situations. BMC’s safety risk assessment goal is to protect the safety of its people, the environment, assets, and the reputation of the Company (PEAR).

BMC has also been successfully renewing its Safety Case, as required by the Brunei’s legislation Workplace Safety and Health Order, 2009, since the first time it was approved by the Brunei Safety, Health and Environment National Authority (SHENA).

Bruneianization Directive
In June 2018, the new Bruneianisation Directive introduced by the then Brunei’s Ministry of Energy (now Department of Energy) required the oil and gas operators in Brunei to gradually achieve 90% Bruneians at all levels and skillpools. To date, the local workforce of the Company stands at 89%.

Corporate Social Responsibility
BMC is renowned for its steadfast commitment to corporate social responsibility (CSR) and community engagement in line with their CSR strategy #RESPECT which guides the Company’s efforts towards meaningful and impactful contributions to the country.

BMC’s recent key CSR are as follows: