Iran is planning to build a new oil refinery in Abadan to replace ageing refining facilities in the region, according to Deputy Oil Minister Abbas Kazzemi.

The project is expected to be financed by Chinese companies, Tehran Times reported Kazzemi as saying. Talks were recently held between National Iranian Oil Engineering and Construction Company (NIOEC) and overseas firms on potential construction agreements for the project.

Iran has nine ongoing development projects at its oil refineries as it aims to increase gasoline supply. The projects include gasoline units at Abadan, Tabriz, Isfahan, Bandar Abbas, Tehran and Imam Khomeini.

Abadan is in the far southwest of Iran, close to the border with Basra in Iraq,