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Brooge Petroleum awards Fujairah refinery construction to SENER

The United Arab Emirates’ Brooge Petroleum and Gas Investment Co (BPGIC) said that it had awarded a contract to Spain’s SENER engineering group to build a new oil refinery in Fujairah.

The plant will produce bunker fuel that complies with new international laws capping sulfur content in shipping fuels to 0.5%.

The first phase of the planned 250,000 barrel bpd refinery will be completed in the first quarter of 2020, the company has said.

New regulations from the International Maritime Organization (IMO) will require ships to use fuels with a sulfur content below 0.5% beginning in 2020. Current shipping fuel is much dirtier, with higher sulfur content.

Earlier this year, BPGIC listed its shares on the Nasdaq stock exchange after merging with U.S.-based firm Twelve Seas Investment Co.

The move was part of the UAE-based oil storage company’s expansion strategy.

BPGIC, which was set up in 2013, is one of the largest holders of storage assets in Fujairah.

Fujairah, located just outside the Strait of Hormuz, is among the world’s largest bunkering hubs.

Source: Reuters

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