Contractors continue to await a decision on the construction of a new refinery in Fujairah, more than a year after commercial engineering, procurement and construction (EPC) bids were submitted, according to sources familiar with the project.

Abu Dhabi-based International Petroleum Investment Company (Ipic) tendered the two main packages on the scheme in September 2013, and received commercial bids in March 2015.

Companies submitting commercial proposals for the first package – the larger deal covering the refinery’s process units – are all based in South Korea and include GS Engineering & Construction and Samsung Engineering.

State-owned Ipic is planning the 200,000 barrel-a-day (b/d) facility to meet rising demand for fuels in the UAE and enable the export of oil products from the port of Fujairah on the east coast of the country.

When Ipic awarded the front-end engineering and design (feed) contract in 2011, the project was scheduled for completion for 2016. However, it is now unlikely to be completed until 2020 at the earliest.

The refinery is one of several major projects in Fujairah facing delays. A new liquefied natural gas (LNG) import facility and a biofuels refinery are also stuck in the pre-execution phase.