Georgia greenlights construction of its first-ever oil refinery

The construction of Georgia's first-ever oil refinery in the Kulevi Free Industrial Zone (FIZ) is set to take place in six phases, with an initial capacity of 1.121 million tons per year, according to Report, which cites Georgian media.

The Khobi Municipality approved the detailed plan for the construction of the Kulevi Oil Refinery and its supporting infrastructure on July 31, 2024. The first phase will see the refinery's capacity reach 1.121 million tons annually, with an 89,000 cubic meter reservoir park for oil storage.

In the future, the refinery's capacity is expected to increase to 2.921 million tons, while the reservoir park's capacity will expand to 440,200 cubic meters.

The construction of the Kulevi Oil Refinery is divided into six stages. The first stage will involve the construction and commissioning of the refinery's main infrastructure. Some objects started in the first phase will continue construction over several stages. Subsequent stages will also add a second railway overpass, tanks, and other industrial facilities.

The total duration of the refinery infrastructure development works is estimated to be 3-4 years.

The future refinery will occupy a total area of 599,970 square kilometers, owned by Black Sea Petroleum LLC, which will undertake the construction of the facility.

"The project's goal is to build a modern, high-tech refinery with complete infrastructure that meets European standards. Petroleum products produced in Georgia will be sold on the local market at lower prices than imported products," the statement said.

The investment in the project is estimated at $30 million.