MWG Enterprises LLC, Patel Family Office (PTO), and Saudi Arabia-based AHQ Group’s Pipe & Well Services Co. (PWS) have formed a private US-Saudi consortium that aims to build a new integrated refining complex and associated port located within a yet-to-be-determined country of the Gulf Cooperation Council (GCC), members of which include the United Arab Emirates (UAE), Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait.

The consortium—officially named MERA Oil—has entered the final stage of host-site selection for the planned $5-billion integrated refinery and energy export corridor, which, if completed, will have crude oil processing capacity of 200,000 b/d, the sponsors and MGW Enterprises said in separate July 29 releases.

After 3 years of evaluating locations across the Mideast Gulf, the consortium said it has narrowed site discussions to three GCC locations outside the Strait of Hormuz.

Following talks progressing during the past 2 years specifically with the shortlisted jurisdictions, MERA Oil is approaching a decision point, with official selection of a definitive host location likely to be confirmed by yearend 2026, according to the partners.

Despite the shortlist, the consortium said it continues to remain open to a “decisively superior” proposition from another qualifying GCC jurisdiction that can meet route-resilience, infrastructure, and development timing requirements before making its final selection.

Further details regarding the shortlist and a specific deadline for non-shortlisted GCC members to respond with alternative proposals were not revealed.

Project scope, infrastructure concept

Phase 1 of the planned MERA Oil development would include the 200,000-b/d integrated refinery linked to deepwater port infrastructure, as well as large-scale storage installations for crude oil and refined products, the consortium said.

The project’s marine export operations would be designed to provide direct access to international shipping routes while remaining outside embattled Strait of Hormuz.

The consortium said the planned integrated complex and port operations—which would have a targeted 100-year project lifetime—intends to support an industrial base for refining, storage, logistics, technical capability, and energy security in the region

Project status, timeline

To date, the sponsors said a pre-feasibility study covering refinery configuration, product slate, preliminary capital requirements, logistics, and phased execution has reached an advanced stage.

Once a host jurisdiction is confirmed, the partners said the project would move into final site diligence and engineering design.

If approved, Phase 1 of the project is slated to reach mechanical completion by yearend 2029, followed by commissioning and commercial operations.

The consortium also confirmed discussions are underway with feedstock providers within and beyond the GCC, with definitive arrangements anticipated to progress in parallel with the final host selection.

Product slate, emissions controls

The refinery’s proposed product slate would focus on high-quality middle distillates, including ultralow-sulfur diesel and jet fuel destined to import-dependent markets in the US, the Atlantic Basin, the Mideast Gulf region, and other international markets, subject to final engineering and offtake arrangements, the consortium said.

According to the partners, Phase 1 is intended to incorporate unspecified energy-efficient refining technologies and advanced emissions-control systems.

The consortium confirmed it is also evaluating sustainable aviation fuel (SAF) co-processing and carbon-management capabilities as potential future components of the planned development.

Investment structure, employment

The consortium said it expects the $5-billion Phase 1 capital program—financing structures of which would be compliant with Islam’s Shariah religious and moral legal framework— to draw on sponsor equity, sovereign and institutional participation, international project finance, and export-credit support.

For the selected host jurisdiction, the sponsors said that, based on preliminary estimates, the project—which would require 1,200-1,500 acres of port-connected industrial land—could support up to 3,000 direct jobs at peak during construction, commissioning, and operations, along with up to 15,000 indirect employment opportunities.