A consortium of US and Saudi Arabian companies has announced it will invest $5 billion (about KRW 6.9 trillion) in the first phase of a new refinery designed to bypass the Strait of Hormuz. The refinery will have a capacity of 200,000 barrels per day (bpd), with the final site expected to be confirmed by the end of 2026.
The project is being pursued by MERA Oil, a joint venture formed by US-based MWG Enterprises (affiliated with the Patel Family Office) and PWS, a subsidiary of Saudi Arabia’s AHQ Industrial Group. The refinery site is reportedly being evaluated among three candidate locations — Saudi Arabia’s Red Sea coast, the United Arab Emirates, and Oman — though a final decision has not yet been made. MERA Oil said it plans to apply “high-efficiency refining technology and emissions-reduction systems,” though the original report did not specify a technology licensor.
The project’s strategic goal is reportedly to reduce dependence on the Strait of Hormuz, through which about 20% of the world’s crude oil trade passes. The strait, a narrow waterway between Iran and Oman, has repeatedly raised concerns about disruptions to oil shipments whenever geopolitical tensions rise.
- Phase 1 investment: $5 billion (about KRW 6.9 trillion)
- Refining capacity: 200,000 barrels per day (bpd)
- Announcement date: July 29, 2026
- Site finalization target: end of 2026
- Mechanical completion target: end of 2029