News outlets in China and Iran have been reporting that the two nations have agreed to a joint venture in the Persian Gulf. The project is an oil terminal that will be constructed on Qeshm Island in the southern part of the Gulf.
The terminal should transform the island into a center for both oil production and storage. When complete, the terminal will be able to accommodate tankers up to 140 feet in depth and store approximately 30 million barrels of crude. When the first stage of construction is finished, the facility on Qeshm Island will be capable of storing 10 million barrels of oil from Iran’s West Karoun region. Ultimately, the terminal is expected to generate $300 million per year.
At 1,491 square kilometers in size, Qeshm Island itself is the largest island in the Gulf. The island will also be home to a financial center, and several Russian and Chinese banks are reportedly interested in opening offices there. Iran hopes that foreign institutions will enter the nation’s domestic market.
The contract was reportedly signed by Iran’s Machine Making Company, and a company in China whose name has not been disclosed. An employee called it one of the largest projects in the field.
Full article: Iran And China To Build Oil Terminal In Persian Gulf (OilPrice)