Iran signs memorandum to build huge oil refinery in Pakistan

Azerbaijan, Baku, Feb. 21 /Trend D. Khatinoglu/ Iran signed a memorandum with Pakistan to build a big refinery with daily 400,000 barrels refining capacity, Fars News Agency reported. This agreement was reached while the neighboring countries signed contract to constructing Iran-Pakistan gas pipeline with yearly 7.8 billion cubic meters capacity. Iran's Tadbir energy company will carry out construction of over 780 km length pipeline inside Pakistan and Iran obligated to pay $500 million loan for this project. According to Fars report, based on the agreement, the two nations discussed building an oil pipeline for supplying 400,000 barrels of Iranian crude oil to Pakistan as well. The agreement of refinery building and supplying crude oil is scheduled to be signed during Pakistani President Asif Ali Zardari's visit to Tehran on Feb.27. According to initial agreement, Pakistan would give a land in Gwadar port to Iran for building mentioned refinery. Fars News Agency quoted Asim Hussain vice president of Pakistan that this country will pay off Iran's gas and oil price via bartering with foods, especially wheat, meat and rice. No further information was provided on the details of the Iran-Pakistan oil trade and the refinery building. Do you have any feedback? Contact our journalist at agency@trend.az