TEHRAN, Nov. 25 (UPI) -- China Petroleum & Chemical Corp. signed a memorandum of understanding with its Iranian partners to invest $6.5 billion in oil refinery construction in Iran.
China has embarked on an investment plan to increase its activity in the Iranian energy sector by investing significantly in national refineries.
Iran, meanwhile, set a national goal of spending more than $20 billion of its own money on seven new refineries in the country.
China Petroleum & Chemical Corp., or Sinopec, signed a memorandum of understanding with the National Iranian Oil Refining and Distribution Co. to invest $6.5 billion to help finance the Iranian oil refineries, Iran's Mehr News Agency reports.
China has moved into the Iranian energy sector already, most recently at the Hormuz refinery in the south of the country. China is involved also in the Abadan refinery, once the world's largest, near the Persian Gulf coast.
Tehran said it needs around $12 billion to increase its refining capacity. Finalization of the Chinese investment package is expected before February.