TEHRAN – South Korea’s Hyundai Engineering Company (HEC) signed a €3-billion contract with Iran’s Ahdaf Investment Company on Sunday for construction of the second 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 two sides’ representatives in Iran, Shana reported.

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 first phase of the complex has witnessed a 30 percent progress so far.

“The second phase includes building four plants for producing olefin, MEG, HD and LLD,” he said.

According to Arefi, 95 percent of the project’s finance will be provided by South Korean banks within nine 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 two 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.

EF/MA