Phase III of the expansion of Brooge Energy’s facility at Fujairah would include the construction of a 25,000 barrels per day refinery for the production of low sulphur fuel oil.
According to Brooge Energy, the results of a recent feasibility support the financial viability of its Phase III plans. As well as a modular refinery, the plans also include a 2.5 million cubic metre oil storage facility, and a 180,000 barrels per day conventional refinery.
The construction of the additional storage and refining capacity will take two years and the company anticipates that it could be operational in 2023.
Nicolaas Paardenkoope, CEO of Brooge Energy and BPGIC, commented: ‘The feasibility study defines a project with robust economics and reinforces the strength of our business strategy, highlighting that the oil market is expected to continue to be the most important energy source going forward, with the Middle East region continuing to be the leading producer and exporter of crude over the medium to long term,’
Paardenkoope noted that the construction of the modular and conventional refineries, which will enable the production of IMO 2020-compliant fuel, comes at a time ‘when the UAE is adding to its oil production capacity which we anticipate will drive demand for refinery services for both the domestic and export market.
‘With the completion of this study, we are now looking forward to potentially starting construction for Phase III as early as the second half of 2021.’