Genoil Inc., Canada announced in a statement that it has signed an agreement to develop a greenfield Genoil Upgrading refinery with a capacity of 200,000 barrel per day in the Port of Duqm in the Sultanate of Oman.
The agreement signed with the Ras Madrakah Petroleum Industry Company and Beijing Petrochemical Engineering Company, a subsidiary of Yanchang Petroleum International Limited
The overall estimated cost of the project is approximately $2.4 billion.
The project will utilize the Genoil Upgrading Technology “GHU” Process.
Genoil will license its proprietary technology, process design package, training, and advisory services, as well as proprietary catalyst and equipment supply.
Beijing Petrochemical has been selected to perform the feasibility study, the Front-End Engineering Design (FEED) to do the project management and act as project EPC contractor including EPC contractor for the construction of storage tank farms, project offsite facilities including the product export terminal, and other required infrastructure such as pipelines.
Ras Madrakah owns the only private refinery license ever granted by the Government of Oman and project has received strong local support.
Eight hundred hectares of land has been reserved for the project. Government gas supply is in place, there are three crude feedstock agreements in place for up to 200,000 barrels per day and three refined product offtake contracts have been secured as well.
Eight square kilometers of land has been secured in the Special Economic Zone Authority of Duqm (SEZAD). The local licenses allow for export and import of products, sea and coastal oil and gas water transport and construction of petrochemical complexes.
The local licenses have no limitation on project capacity and will allow for expansion in the future.
The facility will utilize up to nine crude oil storage tanks, with a capacity of 500,000 barrels each, in Ras Markaz.
An 80 km-long, 28 inch diameter underground pipeline will supply the feedstock from the crude oil storage tanks in Ras Markaz to the Genoil Duqm refinery.
