Dubai is set for new crude oil refinery

A new crude oil refinery is to be set up in Dubai by China Sonangol International Pte Ltd. The refinery comes as a result of an agreement between the company chairman, Sam Pai and Sheikh Ahmed Bin Saeed Al Maktoum, chairman of the Dubai Supreme Council of Energy and president of the Dubai Civil Aviation Authority.

Products refined at the new, state-of-the-art facility will be aimed at both the domestic market and international. The oil refinery will process end products, which could provide a further boost to Dubai in terms of international trading. 

A project consortium is to be created to oversee aspects of the project, including green field project financing, front-end engineering design and process flow management. The consortium will be aided by China Sonangol, which has a range of both upstream and downstream oil and gas projects in operation throughout Africa and Asia.

The latest move could help to further meet the needs of the country in terms of energy, as the growth in the Dubai economy in recent years has seen a rise in energy requirements. Not only could this latest project provide further trade opportunities, it could also result in cheaper fuel and power for residents.

The non-oil economy throughout Dubai is expected to increase by around 4.5 per cent by the end of the year, which would be the fastest pace of increase seen since 2008, according to estimates released by the International Monetary Fund and Bloomberg. 

Investments will be made into the newest technology for the crude oil refinery in order to ensure that quality end products are produced and that the country has a sustained supply of products to meet with current and future energy needs.

Financial advice will be provided to the Dubai Supreme Council of Energy throughout the construction of the oil refinery by Dubai-based Noor Investment Group, to ensure that spending coincides with the future goals of the project.