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Fujairah Signs Long-Term Gasoline Offtake Deal with Etihad Refinery

Prime Highlights 

  • Fujairah has signed a long-term agreement to buy gasoline produced by Etihad Refinery. 
  • The refinery’s first phase will process naphtha into Euro 5-grade gasoline with a capacity of 15,000 barrels per day. 

Key Facts 

  • Etihad Refinery is a subsidiary of Etihad Energy Holding and is developing a refinery focused on cleaner fuel production. 
  • The agreement supports the UAE’s strategy to expand value-added refining and strengthen petroleum supply chains. 

Background 

The Fujairah Government has signed a long-term deal with the Etihad Refinery, which is owned by Etihad Energy Holding, to buy the gasoline that will be manufactured in the future refinery owned by the latter. It is anticipated that the deal will help with the commercial activities in the refinery and develop the downstream energy industry in Fujairah. 

This will serve as a long-term framework for the sale of gasoline in the future refinery and help make the project more sustainable. Moreover, it will contribute to the diversification of the refining industry in the UAE and the production of valuable petroleum products. 

Etihad Refinery will play a significant part in the energy infrastructure of Fujairah. Its first phase will have a design capacity of around 15,000 barrels per day. The plant will process naphtha into Euro 5-grade gasoline and produce other refined petroleum products for customers in domestic and regional markets. 

The government said the agreement forms part of its broader strategy to strengthen fuel supply chains and increase investment in energy-related industries. It also supports Fujairah’s ambition to expand its role as a regional centre for petroleum storage, refining and logistics. 

Mohammed Al Dhanhani, Director of the Emiri Diwan in Fujairah, said the partnership reflects the government’s focus on improving energy security and developing modern energy infrastructure. He added that the agreement would help drive sustainable economic growth while encouraging greater cooperation across the energy sector. 

The latest partnership reinforces Fujairah’s plans to expand its refining capacity and strengthen its position in the regional oil and gas value chain.