Etihad Energy Holding Advances Plans for Fujairah Euro 5 Gasoline Refinery

Dubai | EcoPulse24

Company Estimates Project Investment at Up to $350 Million

Etihad Energy Holding PJSC, formerly known as Gulf Navigation Holding, announced an update on its planned refinery development project in Fujairah, which is expected to produce Euro 5-compliant gasoline and require an estimated investment of between $300 million and $350 million.

The project is being developed through the company's wholly owned subsidiary, Brooge Petroleum and Gas Investment Company (BPGIC).

The company said Front-End Engineering Design (FEED) work has commenced in cooperation with Italy's PEG and Honeywell UOP of the United States, with final project figures and additional disclosures expected after completion of the relevant studies.

Targeting Higher-Value Fuel Production

The planned refinery is designed with an indicative processing capacity of approximately 15,000 barrels per day, primarily focused on processing naphtha into Euro 5 gasoline, in line with regional and international fuel specifications.

According to the company, the project will also produce higher-value petroleum products and complement its existing storage and logistics operations.

Etihad Energy said the refinery is intended to enhance value creation across its integrated energy infrastructure platform.

EcoPulse24 Analysis

A Strategic Move Into Downstream Energy

While the refinery remains in the engineering and study phase, the project signals Etihad Energy's intention to expand beyond storage and logistics activities into higher-value downstream operations.

The initiative also highlights Fujairah's growing strategic importance as one of the region's major energy storage, trading and bunkering hubs located outside the Strait of Hormuz.

However, several key questions remain unanswered, including the project's final cost, financing structure, construction timeline and expected returns.

As a result, investors are likely to view the disclosure as an important strategic development, while awaiting further details following the completion of engineering studies.