China to Finance Iran’s Energy Development Projects

(FNA)- Iranian Deputy Energy Minister Alireza Daemi announced that his ministry will receive nearly $3bln of finance from China to implement at least five development projects in the country.

"The Central Bank of Iran (CBI) and the Ministry of Economic Affairs and Finance have been assigned with negotiating the terms of Chinese financing," Daemi stated, adding that the Energy Ministry plans to use its share of the finance for construction and development of three dams and two power plants.

Earlier this month, an energy official said that a group of Iranian engineers from the Abadan Oil Refinery and Chinese investors have started discussing ways to expand cooperation for building some new units in the plant.

Managing Director of the National Iranian Oil Refining and Distribution Company (NIORDC) Abbas Kazzemi said that the Chinese side has voiced enthusiasm to invest in development projects of the refinery.

Kazzemi said a detailed designing project for the refinery is currently under way, adding that construction will start whenever the studies are concluded.

He went on to say that a group of Iranian engineers are following up on the project in China.

Kazzemi said the refinery is to undergo development for producing euro-5 gasoline and renovating decrepit facilities.

The official said that the project is estimated to cost 2.6 billion euros.

Trade between Iran and China in 2013 was estimated at $45bln.

Iran is currently China's third largest supplier of crude, providing Beijing with roughly 12 percent of its total annual oil consumption.