Abu Dhabi: The UAE based Brooge Petroleum and Gas Investment Co (BPGIC) has announced on Tuesday it plans to set up an oil refinery to produce bunker fuel with a capacity of 250,000 barrel per day (bpd) in 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 sulfur content in shipping fuels.
The first phase of the planned refinery will be completed by the first quarter of 2020, Nicolaas Paardenkooper, BPGIC CEO said in a statement on Wam. The total investment in the project is not revealed.
“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 sulfur 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 and gas industry in the UAE by injecting more investments into this essential sector.”
New regulations of IMO will require ships to use fuels with a sulfur content below 0.5 per cent beginning in 2020. Current shipping fuel is much dirtier, with a higher sulfur content.
He also said the listing of Brooge Petroleum on Nasdaq Stock Exchange in April as a resounding success conducive to building up investor confidence in the company and its expansion plans.