The MERA Oil consortium, comprising US and Saudi Arabian companies, is entering the final stage for selecting a host for their planned $5 billion integrated refinery and export corridor in the Gulf, according to Reuters.

The consortium includes Texas-based energy development company MWG Group, the Patel Family Office, the third-generation global family office, and PWS, an associate company of one of Saudi Arabia’s longest-established industrial groups AHQ Group.

It is narrowing potential locations to three sites across the six-member Gulf Cooperation Council (GCC) and the preferred host country is expected to be announced by the end of 2026, Reuters said.

The energy complex will be located outside the Strait of Hormuz, providing direct access to international shipping routes and offering an alternative export platform, Reuters added.

The planned refinery will have a processing capacity of 200,000 barrels per day (bbl/d) linked to deepwater port infrastructure and large-scale storage facilities, enhancing regional energy exports.

It will incorporate energy-efficient refining technologies and advanced emissions-control systems. The consortium is also assessing the future integration of sustainable aviation fuel (SAF) co-processing and carbon management capabilities.

Discussions with feedstock suppliers are underway, with definitive supply arrangements expected to advance alongside the final site selection.

Currently, Saudi Arabia is exporting its crude cargoes to Egypt’s Red Sea port of Ain Sokhna then being transferred through the Suez-Mediterranean (SUMED) Pipeline to Sidi Kerir on the Mediterranean coast. According to Reuters, these spot cargoes are intended to supplement supplies delivered to Aramco’s long-term customers.