UAE-based Brooge Petroleum and Gas Investment (BPGIC) announced on Monday that it plans to set up an oil refinery in the Emirate of Fujairah. The oil refinery is expected to produce bunker fuel with a capacity of 250,000 barrel per day.
BPGIC CEO Nicolaas Paardenkooper said that the first phase of the planned refinery will be completed in the first quarter of 2020.
“The new facility will contribute to bolstering the growing status of the Emirate of Fujairah in the Oil and Gas industry and help meet the growing demand for shipping fuel that complies with the new international laws on capping sulphur content in shipping fuels.”
“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 said.
The company plans to add 600,000 cubic metres of storage capacity to its existing almost 400,000 cubic metres during the next phase of expansion.
Paardenkooper also said that BPGIC’s listing on Nasdaq in April was a success. This shows global investor interest in the company, he said.
BPGIC will comply with the International Maritime Organisation (IMO) 2020 regulations. According to IMO’s new regulations, ships will be required to use fuels with a sulphur content less than 0.5 percent from next year onward. At present, the commonly used fuels have a higher sulphur content.
The UAE is a major player in the crude sector. It accounts for nearly 4.2 percent of global oil production. The UAE emirate Fujairah is recognised as the world’s second largest bunkering port after Singapore.