Video: Renish Petrochem planning Hamriyah oil refinery
Renish Petrochem has revealed plans to build a crude oil processing plant adjacent to its oil storage facilities at the Port of Hamriyah in Sharjah.
According to Ahmed Ayaz, CEO of Renish Petrochem, the plant will give the oil storage and logistics firm a greater ability to meet demand for diesel from construction sites in the Northern Emirates.
“In the Northern Emirates there is a lot of construction projects underway, and these construction sites usually use generators as their main source of power, so they need diesel on their site,” he says.
“But we often face problems in securing supply from refineries, so we decided to build our own,” he adds.
According to Ayaz, Hamriyah is a good base of operations for the plant because of the existing Renish Petrochem infrastructure, as well as the geostrategic location of the port.
“We have 22 tanks and beside that we have open land available to us,” he tells Logistics Middle East. “In the oil sector we’re providing a complete solution, we buy, we store, we transport and we supply. So the entire package is done through us, with regards to class B products.”
“We do this from Hamriyah because it’s a good alternative to Fujairah. Fujairah has very strict regulations regarding the ships’ age and its pumping capacity. So smaller ships with a smaller pump and older tonnage cannot do trade there. This is especially difficult for some African lines, which have older, smaller tankers. So Hamriyah is a good oil hub for them,” he says.
Ayaz says that Renish Petrochem is currently in talks with “a few leaders in the industry” to form a technical joint venture. “But the refinery will be under the control and management of Renish,” he adds.