Iran Signs Memorandum On Financing The Construction Of New Oil Refinery

(MENAFN- Trend News Agency) BAKU, Azerbaijan, December 6. Iran has signed a memorandum with its domestic partners to build a new oil refinery in the western province of Kermanshah, Trend reports.

According to the memorandum, the Anahita oil refinery will cost $2 billion and will be financed by the National Development Fund of Iran, the country's sovereign wealth fund.

The project will be carried out by Khatam al-Anbiya Construction Headquarter, a conglomerate affiliated with the Islamic Revolutionary Guard Corps.

The memorandum was signed on December 4 at the Iranian Oil Ministry in the presence of officials from the National Iranian Oil Company (NIOC) and Sepah Bank, which will act as the intermediary bank for the fund transfer.

The Anahita oil refinery will have a processing capacity of 150,000 barrels per day of crude oil and will produce a variety of petroleum products, including gasoline, diesel, propylene, liquefied petroleum gas (LPG), and base oil.

The refinery will also produce petrochemicals such as benzene, xylene, toluene, and needle coke. The refinery is expected to be completed in four years and to pay back the investment in 8.3 years.

The Iranian government had approved the construction of the Anahita oil refinery in 2006, but the project had been delayed due to sanctions and other issues. The refinery is part of Iran's plan to increase its refining capacity and reduce its dependence on imported gasoline. The refinery will also create jobs and boost the economic development of the Kermanshah province, which borders Iraq.

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