China opens 1st post-JCPOA LoC to Iran

News ID: 3873375 -
TEHRAN, Jan. 10 (MNA) – Deputy Iranian oil minister said Chinese companies have opened the first Line of Credit (LoC) worth 1.3 billion dollars for new refinery projects.

Managing Director of National Iranian Oil Refining and Distribution Company (NIORDC) Abbas Kazemi, while pointing to reopening of the first Chinese finance in Iran’s petroleum refinery industry in the post-JCPOA period, said “phase one 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."

The official highlighted that the finance for Abadan oil refinery project had been supplied by China Export & Credit Insurance Corporation (commonly known as Sinosure) asserting that the project mainly aims to lower fuel oil output and boost production of more valuable production like gasoline and gas oil.

“The operational contract for the huge refinery project has been inked with Sinopec of China,” NIORDC head continued.

Emphasizing that the two phases of development project in Abadan Refinery would demand an aggregate total of three billion dollars of investment, Kazemi underlined that Iran enjoys 15 per cent of the share in the project while the rest of the share will be supplied by Chinese financers.

He 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.

So far, several negotiations have been conducted and a number of MoUs have been signed with Asian firms including Daelim of South Korea, Japan Cooperation Center, Petroleum (JCCP) and Japan’s JGC Corporation as well as Sinopec of China among the others.

Abadan oil refinery project aims at stabilizing refining capacity of the 100-year-old refinery, producing based on Euro 5 Standard, reducing environmental pollutants, increasing diesel and gasoline production by improving production technology and reducing fuel oil production and collection of old tanks and facilities.

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