NEW DELHI, Jan. 8 India and Iran are discussing building a new refinery as Tehran puts an estimated $18 billion toward meeting growing demand.
Essar Group, an Indian private oil major, and the National Iranian Oil Refining and Distribution Company, are negotiating a $2 billion investment in the southern town of Bandar Abbas.
The 300,000 barrel per day plant would assist Iran in meeting refining demand and further entrench it as a powerful energy player both in OPEC and worldwide.
It would also put Essar in strong position in the Middle East.
We want to strengthen our relations with Iran, an Essar official said regarding the refinery talks with Iran ' s state oil refining company. Essar is eyeing deals for exploring and producing gas to fuel a proposed steel plant, The Financial Express reports.
Iran's large youth population and ultra-inexpensive prices at the gas pump have tasked the country's refineries enough that Iran now is the world's second largest gasoline importer despite having the second largest reserves of oil.
But Essar officials say financing for projects in Iran have been hampered by the ongoing international feud over Iran's nuclear program.
Copyright 2007 by UPI
