LONDON (Dow Jones)
SONHOE Development Company plans to build a 200,000-barrel-a-day oil refinery in the U.K, the company said Wednesday.
The GBP2 billion facility would process heavy crude oil into high quality, low sulfur diesel, naphtha and kerosene for domestic use and for export, the company said. The proposed refinery would also be "one of the largest hydrogen producing plants in Europe," SONHOE said.
"Tees Valley (in northeast England) is the ideal location for this development with the availability of brown field land, deep water access and a highly experienced and world class manufacturing workforce," SONHOE managing director Mike True said in a statement.
The proposal is still subject to approval from local authorities. If built, the facility would represent the first substantial refinery build in Europe in over three decades.
"We are still in the early stages of this project but the fundamentals for this facility are very strong...we are confident that this development will bring significant benefits to the region," True said.
SONHOE plans to source the heavy oil from the North Sea, Latin America, the Middle East, Africa and other regions.
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