A consortium of U.S. and Saudi companies, including Fort Worth-based MWG Group, is set to build a new oil refinery in the Persian Gulf. The refinery will have a capacity of 200,000 barrels of crude oil daily and will combine energy-efficient refining technologies and advanced emissions-control systems.

Local Involvement

The consortium, MERA Oil, also includes the Patel Family Office and PWS, a company associated with Saudi AHQ Group. The new facility will be built outside the Strait of Hormuz, an international flashpoint during the current U.S. and Israeli conflict with Iran.

MWG Enterprises is an energy development company founded and led by entrepreneur Marc W. Gunderson of Fort Worth. The company operates Twin Oaks Bloodstock, an equine management company. Gunderson stated that the sponsor partnership is assembled, the development concept and capital strategy are defined, and they are now choosing their host, which will be one of several Persian Gulf countries under consideration.

Refinery Details

The refinery will have a price tag of $5 billion and will feature a deepwater port, storage capacity, and export facilities. The site should be selected by the end of the year, with a list of three possible locations from the Gulf Cooperation Council, which comprises Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, and Oman.

A new refinery, especially outside the Strait of Hormuz, is welcome news, said Rey Trevino III, director of operations for Fort Worth-based Pecos Country Energy, an oil and gas exploration and production company. Trevino noted that the energy demand is unprecedented and will only continue to grow.

Additionally, a new refinery is planned for the U.S., which could help alleviate the pressure put on the energy industry by conflicts in the Middle East. The refinery, set to be constructed in Brownsville, Texas by America First Refining, will process U.S. shale oil, much of it produced in the state.

Original reporting: Fort Worth Report — read the source article.