GulfNav subsidiary BPGIC has awarded a front-end engineering design contract for the project that will feature a refining unit capable of upgrading 15,000 barrels a day of naphtha to Euro-5 grade gasoline
Dubai-based Gulf Navigation Holding (GulfNav) has announced that its Fujairah-based subsidiary, Brooge Petroleum & Gas Investment Company FZE (BPGIC), has awarded a front-end engineering design (feed) contract for a project to upgrade its naphtha output with the aim of producing Euro 5–grade gasoline.
BPGIC has awarded the contract for feed works to PEG Engineering and Contracting DMCC, the Dubai-based subsidiary of Italy’s Progetti Europa and Global SpA.
The first phase of the planned project will see the establishment of a refining facility that will have the capacity to upgrade 15,000 barrels a day of naphtha to high-quality Euro-5 grade gasoline.
BPGIC has awarded a separate contract to US-based Honeywell UOP to obtain its licensed technology for the naphtha to gasoline conversion process.
BPGIC co-owns a topping refinery in Fujairah with Nigeria-based Sahara Energy Resources, which produce low-sulphur bunker fuel for ships and vessels. It is understood that the new naphtha upgradation unit could be integrated with the existing topping refinery unit.
“This agreement represents a pivotal step in supporting BPGIC’s transition into a new phase of growth through entering specialised refining. It strengthens our business model and expands our presence across the hydrocarbon value chain,” Saif Al-Hazaymeh, BPGIC’s CEO, was quoted as saying in a statement.
Dubai Financial Market (DFM)-listed GulfNav completed the transaction to acquire Brooge Energy’s Fujairah-based subsidiaries BPGIC and Brooge Petroleum & Gas Investment Company Phase 3 FZE, earlier in December.
GulfNav is an operator in the midstream oil and gas industry, specifically in the maritime transport and oil storage domains.
As part of the transaction, GulfNav increased its share capital from approximately AED837m ($227.91m) to AED1.65bn ($448.29m) and issued mandatory convertible bonds to Brooge’s shareholders. The company’s total share capital is expected to reach around AED3.5bn ($953m) upon conversion in the near term.