Tehran has been seeking investment to upgrade ageing refineries
South Koreas SK Engineering & Construction (E&C) has signed a $1.6bn deal to upgrade the 110,000 barrel-a-day (b/d) Tabriz Refinery in northern Iran.
The work, which is set for completion 36 months after the project breaks ground, involves renovating the refinery, which was built in 1976.
A consortium of SK E&C and Irans Oil Design Construction Company are responsible for financing and implementing the refinery scheme, which is intended to boost its gasoline and diesel production capacity.
|Tabriz refinery actual average production, 2015/16|
|Product||Production rate (cm/d)|
|cm/d=Cubic metres a day; LPG=Liquified petroleum gas. Source: NIORDC|
Following the lifting of nuclear-related sanctions, Iran is seeking up to $14bn of investment in its refining sector in order to upgrade ageing refineries.
The Islamic Republic currently has a refining capacity of about 1.99 million b/d. By 2021, Iran aims to raise this to 3 million b/d.
The Tabriz refinery upgrade was included in a memorandum of understanding signed in 2016 by Italys Saipem concerning cooperation in energy projects in Iran.
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