Iran’s Ghadir Group has reached an agreement with Italian  Italian Saipem and Maire Tecnimont to cooperate on building a gas condensate refinery with a 120,000b/d capacity in southern city of Shiraz at the Fars Province, reported Tehran Times.

Ghadir Investment Company’s Managing Director, Gholamreza Soleimani, said that the final contract is estimated at $809m and it is expected to be signed in the near future. Iran is set to raise $14b of investment in this sector to push its refining capacity over 3.2mb/d, according to The Financial Tribune. Currently, Iran has nine active refineries with a total capacity of 1.8mb of crude oil.

The Italian companies will provide 85% the refinery construction and Ghadir will hold 15%. Furthermore, Tecnimont S.p.A. will provides engineering, procurement, and construction services to oil and gas, petrochemical and chemical industries. As of 2005, Tecnimont S.p.A. operates as a subsidiary of Maire Tecnimont S.p.A. Saipem has been contracted for designing and constructing several pipelines, including Blue Stream, Greenstream, Nord Streamand South Stream.