Iran has agreed to build an oil refinery in the Syrian city of Homs, Reuters reports.

The refinery will initially have the capacity to refine 70,000 barrels a day (b/d) of crude oil, but its capacity will rise to 140,000 b/d, according the Head of the Research Institute of Petroleum Industry (RPIP), Akbar Zamanian, Fars News Agency reports.

It will refine both heavy and light Syrian crude, Zamanian said.

Construction will begin after the cessation of hostilities in Syria, according to Reuters.

Earlier this month Iran and Syria announced their intent to cooperate in the electricity sector, and the Iranian company, Mabna, signed an EU 130 million contract to provide five gas-powered units.