United Arab Emirates’ Brooge Petroleum and Gas Investment Co (BPGIC) announced plans to set up an oil refinery to produce bunker fuel with a capacity of 250,000 barrel per day (bpd) in the Emirate of Fujairah.
The company said the facility will be 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 sulphur content in shipping fuels.
The first phase of the planned refinery will be completed by Q1 2020, Nicolaas Paardenkooper, BPGIC CEO said, according to a statement on WAM.
"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 sulphur content in shipping fuels," he added.
"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.
He said the listing of the company on Nasdaq Stock Exchange in April was a success and supports building investor confidence in the company and its expansion plans.
New regulations of IMO will require ships to use fuels with a sulphur content below 0.5 per cent beginning in 2020. Current shipping fuel is much dirtier, with a higher sulphur content.