A Saudi-US consortium has moved into the final stage of selecting a Gulf country for a $5 billion integrated refinery and energy export corridor aimed at creating a major oil export platform outside the Strait of Hormuz.
The project, being developed by MERA Oil, a partnership between US-based MWG Enterprises, the Patel Family Office and Saudi AHQ Industrial Group’s subsidiary PWS, has narrowed its options to three GCC countries after completing three years of site assessments and extensive discussions with regional governments.
The consortium has not disclosed the shortlisted locations but said the final decision will be based on factors including access to the sea, logistics, industrial infrastructure, land availability, workforce capacity, regulatory conditions and long-term competitiveness. The host country is expected to be announced before the end of 2026.
The planned facility will include a 200,000-barrel-per-day refinery, crude and refined product storage, a deep-water port and marine export infrastructure. The project is designed to allow energy shipments to reach global markets without relying on the Strait of Hormuz, one of the world’s most important oil transit routes.
The move comes as energy producers and investors increasingly focus on supply chain flexibility amid rising geopolitical risks in the Gulf region. Around one-fifth of global oil trade passes through the Strait of Hormuz, making alternative export routes a growing priority.
Lakshmi Narayanan, vice chairman of the Patel Family Office, said the decision to build outside the strait was part of a long-term strategy rather than a response to a specific crisis. He added that locations with direct access to global shipping routes offer greater reliability and flexibility for energy markets.
The first phase of the project will require a $5 billion investment and will feature advanced refining technology, emissions reduction systems and potential future additions such as sustainable aviation fuel production and carbon management facilities.
MWG Enterprises founder Marc Gunderson said the consortium has finalised its investment and financing approach, which will include institutional funding, project finance, corporate debt, export credit agencies and Islamic financing options such as sukuk.
The consortium expects detailed engineering work to begin after site selection, with mechanical completion targeted by the end of 2029. The facility will focus on producing high-value refined fuels, including low-sulphur diesel and jet fuel, for markets across the US, Gulf region and other international destinations.
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