The petrochemical project funded by Hengyi Group, a private company in Xiaoshan district of Hangzhou, is located on Pulau Muara Besar Island, Brunei. [Photo/zj.zjol.com]

A petrochemical project funded by Hengyi Group, based in Xiaoshan district of Hangzhou, recently began operating in Brunei. It is China's biggest investment project in the Southeast Asian country to date.

The project is also the first privately-funded oil refining and chemical project to be carried out under the auspices of the Belt and Road Initiative, as well as the first overseas petrochemical project to fully conform to Chinese design, construction, and production standards.

The project is divided into two phases. The first phase covers 375 hectares and carries a price tag of $3.45 billion. It started construction in March 2017 and is expected to produce 8 million metric tons of oil every year.

Products generated by the project will not only meet the domestic needs of Brunei, but will also be exported to other countries, said Chen Liancai, CEO of Hengyi Brunei, adding that the project will help improve the country's oil and gas industrial chain and drive the development of other industries such as logistics, engineering and catering.

The project is expected to yield output of $5.5 billion by 2020 and create around 4,000 jobs for locals, said Chen.