UAE-based Brooge Petroleum and Gas Investment Company (BPGIC) will construct an oil refinery with a production capacity of 250,000 barrels per day of bunker fuel in the emirate of Fujairah.
According to UAE state news agency, Wam, the facility will top sulphur content in shipping fuels and comply with new International Maritime Organisation regulations that will be implemented from 2020, under which ships are required to use fuel with less than 0.5% of sulphur.
Chief executive officer of BPGIC, Nicolaas Paardenkooper, said the refinery's first phase would be completed by Q1 2020.
He added: "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 sulphur content in shipping fuels."
In April 2019, BPGIC merged with Nasdaq New York-listed Twelve Seas Investment Company, which saw the latter acquiring 100% of BPGIC's issued and outstanding shares for approximately $1bn (AED3.67bn).
The combined entity had a market capitalisation of $269.1m as of 14 May, 2019.
Paardenkooper said the company’s stock market listing in April had boosted investor confidence and its expansion plans.
BPGIC is currently developing Phase 2 of its facility within Fujairah Terminal to increase its crude oil capacity by 600,600m³ across eight tanks. Construction work for this project is due be completed by Q4 2019.
