Sahara Energy, Brooge Petroleum target 250,000 bpd refinery in Fujairah

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Sahara Energy Resources DMCC Dubai and Brooge Petroleum and Gas Investment Co (BPGIC) and have signed a partnership agreement to set up an oil refinery capable of producing bunker fuel with a capacity of up to 250,000 barrel per day (bpd) in the Emirate of Fujairah.

Sahara Energy and BPGIC said the facility will be one of the first of its kind in the Middle East and North Africa to comply with the new regulations of the International Maritime Organisation (IMO) 2020 by capping sulfur content in shipping fuels. The first phase of the planned refinery is expected to be completed by Q1 2020.

Mohammed Sanusi Barkindo, Secretary General of OPEC, attended the signing ceremony in Abu Dhabi and said the deal “evolved through the drive of the UAE’s leadership in promoting and supporting such private initiatives and expediting the diversification of their economies.” He underlined the “unique role of the private sector as a critical engine for economic vision and strategies.”

Commenting on the signing, Nicolaas Paardenkooper, BPGIC CEO, said, “The new facility will contribute to bolstering the growing status of the Emirate of Fujairah in the Oil & Gas industry and help meet the growing demand for shipping fuel that complies with the new international laws on capping sulfur content in shipping fuels, as most of the current shipping fuel contains up to 3,5 percent sulphur.” New regulations of IMO will require ships to use fuels with a sulphur content below 0.5 percent beginning in 2020. “It falls in line with the company’s expansion strategy and its growing contribution to the development of the Oil & Gas industry in the UAE by injecting more investments into this essential sector,” he noted.

Executive Director, Sahara Group, Wale Ajibade, said the Refinery Unit would from … Read More...