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U.S.-Saudi MERA Oil consortium to build $5 billion Gulf refinery

The proposed complex, to be sited outside the Strait of Hormuz, would have 200,000 barrels per day capacity and include a deepwater port plus storage and export facilities.

Reported · Written up by our desk · Energy

A consortium of U.S. and Saudi firms plans to build a new refinery in the Persian Gulf despite the ongoing regional situation, OilPrice reports, citing Reuters. The project, dubbed MERA Oil, is slated to cost $5 billion and process 200,000 barrels of crude oil per day.

OilPrice reports that the partners are still selecting the refinery site, narrowing options to three possible locations from among the Gulf Cooperation Council states, which include six Gulf countries. The consortium says the facility would be located outside the Strait of Hormuz.

In addition to refining capacity, Reuters says the complex would also feature a deepwater port, storage capacity, and export facilities. OilPrice adds that the partners may later expand into sustainable aviation fuel processing and carbon management facilities at a future date.

The refinery plan comes after disruptions to Saudi Arabia’s refining system, with OilPrice noting that Saudi Aramco had to shut down its Jazan refinery. The shutdown removes 400,000 barrels per day of global refining capacity following a strike by the Yemeni Houthis, with repairs reported to run until mid-August.

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