South Korea’s Hyundai Engineering Company signed a €3-billion contract with Iran’s Ahdaf Investment Company on March 12, 2017, for construction of the 2nd phase of Kangan Petro Refining Complex in Iran’s southwestern Bushehr province.
The contract, which is in the form of an Engineering, Procurement, Construction and Financing (EPCF) Contract, was signed by the 2 sides’ representatives in Iran.
In the signing ceremony, Asghar Arefi, the managing director of Ahdaf (a subsidiary of Iran’s Oil Industry Pension Fund), who signed the contract, noted that with making €120 million of investment, the 1st phase of the complex has witnessed a 30 % progress so far.
«The 2nd phase includes building 4 plants for producing olefin, MEG, HD and LLD,» he said.
According to Arefi, 95 % of the project’s finance will be provided by South Korean banks within 9 months and when the financing is finalized the project will be immediately put into operation.
«The most important issue and the most difficult step after signing the contract would be finalization of financing agreements with banks and insurance institute of South Korea,» he noted.
Kangan Petro Refining project is defined into 2 phases, phase 1 is construction of C2 recovery and fractionation plant and phase 2 includes building of ethane cracker and polymer plants. It is planned that the company’s products be consumed in local market and be exported.