US-Saudi consortium advances plans for $5 billion Gulf refinery

The MERA Oil consortium of U.S. and Saudi Arabian companies is advancing plans for a $5 ​billion integrated refinery and export corridor in the ‌Gulf aimed at boosting regional energy infrastructure, its partners said on Wednesday, as the Iran war continues to disrupt energy flows.

Texas-based ​energy development company MWG Group, the Patel Family ​Office and PWS, an associate company of Saudi ⁠industrial conglomerate AHQ Group, have entered the final ​stage of site selection for the refinery, which will ​have capacity of 200,000 barrels per day.

The consortium has narrowed the site selection process to three locations in the Gulf Cooperation ​Council six-nation bloc.

The preferred host is expected to ​be confirmed by the end of 2026, the companies said, without ‌providing ⁠specific locations.

The integrated refinery will be linked to deepwater port infrastructure, large-scale storage of crude and refined products, and marine export facilities.

MERA Oil said the planned project ​is located ​outside the ⁠Strait of Hormuz and aims to provide an export platform with direct access to ​international shipping routes.

The energy complex will incorporate ​energy-efficient ⁠refining technologies and advanced emissions-control systems.

Sustainable aviation fuel co-processing and carbon-management capabilities are also being evaluated as potential ⁠future components.

The ​consortium is engaged in talks ​with feedstock providers, with definitive arrangements expected to progress alongside the final ​site decision.

- Reuters