The new refiner, estimated to cost 2.6 billion euros, will have the capacity of processing 210,000 b/d of oil, deputy petroleum minister Abbas Kazemi said.

Kazemi, who is also managing-director of National Iranian Oil Refining and Distribution Company (NIORDC), said decrepit facilities at Abadan refinery will be phased out after the new facility has been constructed.

He said China is expected to provide the necessary finance for the project.

During recent Tehran Oil and Gas Show, talks were held between National Iranian Oil Engineering and Construction Company (NIOEC) and foreign companies for cooperation in the construction of the new refinery.

Rashid Seyedian, an NIOEC official, said the PSA and hydrogen production unit of the new refinery may be commissioned to foreign companies.

Ali-Asghar Sajedi, managing-director of NIOEC, said the new refinery is expected to offer high-quality products with less harm on the environment.

The new facility would raise regular gasoline production at Abadan refinery from 60,000 to 81,000 b/d, kerosene production from 18,000 to 45,000 b/d and offer premium gasoline to 20,000 b/d.

Moreover, fuel oil production will be cut from 120,000 b/d to 88,000 b/d in order to reduce detrimental effects on the environment.