FARS News Agency cited Kazzemi as saying that the new refiner is expected to cost €2.6bn and will have the capacity of processing 210,000 barrel per day (bpd) of oil.

The old facilities at Abadan refinery will be decommissioned following completion of the new facilities construction.

The project would receive necessary finance from China, Kazzemi added.

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

With the compaction of 9 ongoing development plans at oil refineries, Iran is planning to improve its gasoline and gasoil production capacity by 64 and 12 million liters per day.