China opens $1.3bln credit line to finance Iran energy projects
Iran's Deputy Oil Minister, Abbas Kazemi, announced that several Chinese companies have opened the first line of credit (LoC) worth $1.3 billion to finance new refinery projects in Iran.
"The first phase of the 1.3-billion-dollar line of credit has been officially opened by a Chinese firm for the project to develop and optimize Abadan Refinery," Kazemi said.
He said that the finance for Abadan oil refinery project had been supplied by China Export & Credit Insurance Corporation (commonly known as Sinosure), adding, "The project mainly aims to lower fuel oil output and boost production of more valuable production like gasoline and gas oil."
Kazemi reiterated that the two phases of the development project in Abadan Refinery would demand an aggregate total of $3 billion of investment, and said, "Iran enjoys 15 percent of the share in the project while the rest of the share will be supplied by Chinese financers.
The Iranian deputy oil minister had previously stressed that all old refineries of the country required a total of approximately 14 billion dollars for them to produce Euro-4 products and decrease fuel oil out pot to less than 10 per cent.
Iran has so far held several negotiations and signed a number of memoranda of understanding (MoUs) with a number of Asian firms, including Daelim of South Korea, Japan Cooperation Center and Petroleum (JCCP) and Japan’s JGC Corporation as well as Sinopec of China among others.