Dubai inks MoU with Hong Kong-based firm to set up second refinery

Dubai has signed a Memorandum of Understanding (MoU) with China Sonangol to build a second crude oil refinery in the emirate, state news agency WAM reported.
The MoU was signed by Sheikh Ahmed bin Saeed, chairman of the Dubai Supreme Council of Energy and Sam Pai, chairman of China Sonangol Group. China Sonangol Group is a joint venture between Hong Kong-based New Bright International Development and Angola’s state-owned oil company, Sonangol EP.
Without specifying the project’s cost, its scale or feedstock source, the Dubai government said that the refinery will have the capacity to process products for domestic, as well as the export, market.
“Fitted out with advanced technology, the refinery will seek to ensure the sustained supply of refined-end products for the emirate’s future energy consumption while further augmenting Dubai’s export portfolio,” a government statement said.
In order to oversee front-end engineering design, process flow management and green-field project financing, a project consortium will be established, while China Sonangol will provide its resources and expertise in mobilizing the project consortium.
Dubai’s existing refinery, operated by Emirates National Oil Co., is located at Jebel Ali and has the capacity to process 120,000 barrels of crude oil per day.
(September 27, 2013)