The Mira Oil alliance of US and Saudi partners has identified three potential locations in the Gulf Cooperation Council (GCC) countries to bypass the energy flow risks in the Strait of Hormuz created by the Iran war. According to Al Jazeera, the host country for the integrated refinery project, which envisions a $5 billion investment, is expected to be announced before the end of 2026.
The partnership completed the shortlist after three years of site evaluation and two years of detailed discussions. The candidate locations are being kept confidential for now. The alliance includes Texas-based energy development company MWG Enterprises, the Patel family office, and PWS, which is part of the Saudi Abdul Hadi Abdullah Al-Qahtani & Sons industrial group.
Target US and international markets
The planned facility will have the capacity to process 200,000 barrels of crude oil per day. The refinery, which will operate integrated with a deep-water port, large storage tanks and marine export terminals, will produce high-standard middle distillates, mainly low-sulfur diesel and jet fuel.
The products are expected to be sold to import-dependent international markets, primarily the US, Atlantic and Gulf markets. The final breakdown will be determined by engineering studies and procurement agreements.
Effective closure of Hormuz cuts production
Building the refinery outside the Strait of Hormuz provides a critical advantage against supply risks triggered by the Iran war. According to data from the US Energy Information Administration (EIA), the effective closure of the strait in March 2026 halted shipments of most of the Gulf countries' energy products.
The UAE's crude oil and condensate production stood at 4 million barrels per day at the start of 2026, but fell to an average of 2.4 million barrels per day during the March-May period. The UAE is using the Abu Dhabi Crude Oil Pipeline to deliver 1.8 million barrels per day of Murban crude to Fujairah Port as an alternative to Hormuz, and will increase capacity by another 1.5 million barrels per day with a second line scheduled to come online in 2027. Other Gulf countries, however, have no direct alternative route.
Timeline and financing plan
The pre-feasibility study has reached an advanced stage. After the host country is determined, final site inspection and engineering design will proceed. Mechanical completion of the first phase is targeted for the end of 2029, with testing and commercial commissioning immediately afterwards.
The project is subject to conditions such as site selection, environmental reviews, government approvals, financing arrangements and final investment decision. The first phase is planned to be supported by partner contributions, sovereign wealth funds, institutional investors, international project financing, export credits and Sharia-compliant instruments.
The partnership is continuing 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 be built on 1,200 to 1,500 acres of industrial land. Energy-efficient refining technologies and advanced emission control systems will be used. The addition of sustainable aviation fuel and carbon management capacity in the future is also under consideration.
At peak construction and operation, 3,000 direct and approximately 15,000 indirect jobs are projected; however, these figures may vary depending on final design and location.
