Key facts
- A consortium of U.S. and Saudi companies plans to build a $5 billion refinery in the Persian Gulf.
- The refinery will have a capacity of 200,000 barrels per day.
- The MERA Oil consortium includes MWG Group, Patel Family Office, and PWS (associated with Saudi AHQ Group).
- The planned facility will be located outside the Strait of Hormuz.
- The project also includes a deepwater port, storage, and export facilities.
A consortium of U.S. and Saudi companies, operating under the name MERA Oil, is planning to construct a new $5 billion oil refinery in the Persian Gulf. The facility is designed to process 200,000 barrels of crude oil daily and will include a deepwater port, storage, and export capabilities. Notably, the planned location is outside the Strait of Hormuz, a critical chokepoint for global oil shipments, aiming to mitigate risks associated with regional instability.
The consortium comprises Texas-based MWG Group, the Patel Family Office, and PWS, which is associated with Saudi AHQ Group. The partners are currently evaluating three potential sites within the Gulf Cooperation Council (GCC) states. Future phases of the project may incorporate sustainable aviation fuel processing and carbon management facilities.
This development follows recent disruptions to global refining capacity. Saudi Aramco's Jazan refinery, with a capacity of 400,000 barrels per day, was recently shut down due to a strike claimed by the Yemeni Houthis. Repairs are expected to take until mid-August, exacerbating an already tight supply situation for refined fuels. Analysts have warned of a severe supply gap driven by ongoing conflicts in the Persian Gulf, Red Sea, and related to the war in Russia, which has led to record high crack spreads.