Iran, China ink terminal deal

20.06.16. China and Iran have reportedly signed a contract to establish an oil terminal on Qeshm Island in the southern Persian Gulf.
The plan could turn the island into an important hub for oil production and reserves, Iran’s official media said.
The contract, valued at US$550 million, was signed by Iran’s Machine Making Co with China’s largest heavy industry enterprise to build the island into the country’s largest oil production and reserves base.
After the completion of the first phase, Qeshm Island will be capable of storing 10 million barrels of crude oil, according to Iranian state television. The project would be able accommodate tankers up to 140m depth.
A 10 year lease agreement could generate up to US$300 million in revenue each year.
Located north of the Strait of Hormuz, Qeshm Island is the largest island in both Iran and the Persian Gulf, covering an area of 1,491 sq km.