US-Saudi MERA Oil Nears Final Site Choice for $5bn Refinery

A newly formed US-Saudi private consortium, MERA Oil, has entered the final stage of selecting the location for its planned US$5 billion integrated refinery and energy export corridor. The consortium is led by MWG Enterprises, Patel Family Office, and PWS, an associate company of Saudi Arabia's long-established industrial group AHQ Group.

The project is centred on building a 200,000-barrel-per-day integrated refinery along with export infrastructure designed to strengthen energy and industrial capabilities across the Gulf region.

Three GCC locations shortlisted outside the Strait of Hormuz

After spending three years assessing possible locations across the Gulf, the consortium has reduced its options to three GCC sites located outside the Strait of Hormuz.

According to the consortium, discussions with the shortlisted locations have continued for the past two years and are now close to a final decision. A preferred host location is expected to be announced before the end of 2026.

Although negotiations have reached an advanced stage with the three shortlisted locations, MERA Oil said it remains open to considering another GCC jurisdiction if it presents a significantly stronger proposal that meets the project's infrastructure, route resilience and development schedule requirements before the final decision is made.

Refinery planned with storage, port and export facilities

The proposed development includes a 200,000-barrel-per-day refinery connected to deepwater port infrastructure, large-scale storage facilities for crude oil and refined products, and marine export terminals.

By locating the project outside the Strait of Hormuz, the consortium aims to create an export platform with resilient access to international shipping routes.

In addition to refining operations, the project is intended to establish a long-term industrial base that supports manufacturing, logistics, technical expertise and regional energy security.

Consortium says project is ready for host selection

Marc W. Gunderson, Founder of MWG Enterprises, said the project has reached an important stage after years of planning.

He said that three years of regional evaluation and two years of detailed discussions with three strong candidate locations have brought the consortium to a final decision point. According to Gunderson, the project sponsors, development strategy and capital plan are already in place, and the next step is choosing the host jurisdiction. He added that the location that moves quickly with the consortium in the coming months could secure a major downstream, storage and energy export platform.

Phase One investment targets completion by 2029

The first phase of the project involves an investment of up to US$5 billion to develop an energy complex featuring energy-efficient refining technologies and advanced emissions-control systems.

The consortium is also studying the future inclusion of sustainable aviation fuel co-processing and carbon management capabilities as part of the project's long-term development.

A pre-feasibility study covering refinery design, product mix, preliminary capital requirements, logistics and phased construction has reached an advanced stage.

Once the host jurisdiction is confirmed, the project is expected to move into final site assessments and engineering design. Mechanical completion of Phase One is targeted for the end of 2029, followed by commissioning and commercial operations.

Project supports Gulf refining and export growth

The consortium said the development supports wider regional efforts to expand refining, storage and export capacity across the Gulf.

According to the GCC Statistical Centre, the six GCC countries exported around 11.5 million barrels of crude oil per day in 2024, accounting for approximately one quarter of global crude oil exports.

The refinery is expected to produce high-specification middle distillates, including ultra-low sulphur diesel and jet fuel, for selected import-dependent markets in the United States, the Atlantic Basin, the Gulf region, and other international markets, subject to final engineering work and offtake agreements.

Focus on industrial growth and local economic development

Abdulmalik Alqahtani, Group Chief Executive Officer of AHQ Group, said expanding domestic value addition remains one of the Gulf's key industrial opportunities.

He stated that decades of industrial experience have shown that projects of this scale should leave lasting benefits for the host country through job creation, support for local suppliers, technical expertise and stronger industrial capacity. He added that the consortium looks forward to completing the selection process with the jurisdiction best positioned to move forward quickly.

The first phase is expected to cover approximately 1,200 to 1,500 acres of port-connected industrial land.

The development is designed to generate long-term economic benefits through local procurement, engineering opportunities, workforce development and industrial capability building in line with national In-Country Value programmes.

Based on preliminary sponsor estimates, the project could support up to 3,000 direct jobs during construction, commissioning and operations, along with up to 15,000 indirect and induced employment opportunities.

Funding strategy and feedstock discussions continue

Lakshmi Narayanan, Vice Chair of Patel Family Office, said the project is designed as long-term infrastructure that requires strong governance, a balanced capital structure and transparent cooperation with the host government.

She added that Patel Family Office is engaging with sovereign and institutional partners that share the same long-term investment approach.

The MERA Oil consortium is also holding discussions with potential feedstock suppliers from within the GCC and beyond. Final supply arrangements are expected to progress alongside the selection of the host location.

The planned Phase One investment is expected to be financed through a combination of sponsor equity, sovereign and institutional investment, international project finance, export credit support and Shariah-compliant financing structures.