The plan would significantly expand VLSFO production at Fujairah. File Image / Pixabay
Oil company Brooge Energy's plan to build a 25,000 b/d refinery focused on VLSFO in Fujairah has been approved by a feasibility study.
The company plans to build a 25,000 b/d modular refinery focused on VLSFO production, a larger 180,000 b/d conventional refinery and a 2.5 million m3 oil storage facility, it said in a statement on its website last week.
The facility will take about two years to build, and the company expects it to be operational before the end of 2023.
"The feasibility study defines a project with robust economics and reinforces the strength of our business strategy," Nicholaas Paardenkooper, CEO of Brooge Energy, said in the statement.
"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."
Bunker demand at Fujairah totalled about 6.9 million mt last year, according to Ship & Bunker and BLUE Insight's market volumes survey.