Mira Oil, a US-Saudi partnership, has shortlisted three possible sites in Gulf Cooperation Council (GCC) countries to overcome the damage the Iran war has caused to energy flows through the Strait of Hormuz. The integrated refinery to be built outside Hormuz with a $5 billion investment will be a critical alternative for the region's energy exports.
After three years of site evaluation and two years of negotiations, the partnership has finalized the shortlist and will announce the host country before the end of 2026. The candidate locations are being kept confidential for now.
The Mira Oil partnership consists of Texas-based MWG Enterprises, the Patel family office, and PWS, which is part of the Saudi Abdul Hadi Abdullah Al-Qahtani & Sons industrial group.
Refinery capacity and product targets
The planned facility will process 200,000 barrels of crude oil per day. Integrated with a deepwater port, large storage tanks, and marine terminals, the refinery will primarily produce high-quality middle distillates such as ultra-low sulfur diesel and jet fuel.
The products are intended for sale in import-dependent international markets, primarily the United States, the Atlantic, and Gulf markets. The final distribution will be determined through engineering studies and purchase agreements.
Seeking an alternative to the Strait of Hormuz
Building the refinery outside Hormuz is seen as a strategic move against the supply risks triggered by the Iran war. According to the U.S. Energy Information Administration (EIA), the de facto closure of the strait in March 2026 halted shipments of the vast majority of Gulf countries' energy products.
The UAE's crude oil and condensate production, which was 4 million barrels per day at the beginning of 2026, fell to an average of 2.4 million bpd during the March-May period. The UAE delivers 1.8 million bpd of Murban crude to Fujairah Port via the Abu Dhabi Crude Oil Pipeline as an alternative to Hormuz. A second pipeline set to come online in 2027 will add another 1.5 million bpd of capacity. However, other Gulf countries have no direct alternative route.
Project timeline and financing sources
The pre-feasibility study has reached an advanced stage; once the host country is selected, the final site inspection and engineering design will begin. The mechanical completion of the first phase is targeted for the end of 2029, with testing and commercial commissioning shortly after.
The project is subject to conditions such as site selection, environmental reviews, government approvals, financing arrangements, and a final investment decision. The first phase's financing will be supported by partner contributions, sovereign wealth funds, institutional investors, international project finance, export credits, and Sharia-compliant instruments.
The partnership continues discussions with crude oil suppliers from within and outside the GCC. Final agreements are expected to be finalized simultaneously with the host country.
The facility will rise on 120 to 150 hectares of industrial land. Energy-efficient refining technologies and advanced emission control systems will be used. Adding sustainable aviation fuel and carbon management capacity in the future is also under consideration.
At peak construction and operation, 3,000 direct and about 15,000 indirect jobs are envisaged, though these figures may vary depending on the final design and location.
