Project management firm SNC-Lavalin has signed an agreement with Florexx International Investments to build a refinery in the UAE.
SNC-Lavalin and Dubai-based Florexx International Investments will work together on the project to build the advanced topping refinery.
The agreement includes building a refinery producing 100,000 barrels of petroleum products per day, as well as non-process technical buildings, offices, and supporting infrastructure.
The Canadian outfit will deliver basic engineering, master planning, process technology, and selection to support project investment decisions set to be made in Q3 2018.
Once the project reaches the engineering, procurement, and construction (EPC) phase, the Canadian contractor will start design and delivery of the UAE refinery.
It will work alongside Emirati contractors on the advanced topping refinery project.
An advanced topping refinery uses distillation columns to separate crude oil into different types of petroleum product, including the flammable liquid naphtha, diesel, kerosene, and fuel.
President of oil and gas at SNC-Lavalin, Christian Brown, called the project "an important addition to the work" the business does in the UAE.
He said the agreement would boost "our extensive capability in providing end-to-end solutions in the downstream oil and gas market, as well as contributing to the growth of our business in the region and our continued focus on adding value to all seven Emirates."
The contractor did not disclose the location of the future refinery.
Florexx International Investments is based and registered in Dubai, and says it is active in the country's nascent bio, green, and renewable energy sectors.
The contract win is SNC-Lavalin's second in the Middle East this month. Earlier in June, the business inked a design and build deal for a greenfield polyvinyl chloride (PVC) plastics plant 150km southeast of Oman's capital Muscat. The total cost of this construction project is estimated to be up to $1.5bn (OMR576m).
In May, Central District Cooling Company, a subsidiary of Saudi Tabreed, awarded SNC-Lavalin a $42m (SAR160m) EPC contract to build infrastructure to increase cooling capacity at a Mekkah-based plant by 25%.