The Kuwaiti Al Arfaj Group signed a memorandum of understanding to build a 600,000 barrel per day (b/d) oil refinery in the Indian state of Andhra Pradesh, according to the Chief Minister of Andhra Pradesh, N. Chandrababu Naidu, Reuters reports.

The group will also build a liquified natural gas (LNG) terminal with a yearly capacity of 10 million tons and a petrochemical production facility, the news service reports.

In September, India set a new record for oil imports, importing on average 4.83 million b/d for the month, according to Reuters. The country is the third largest importer of crude in the world.

Indian demand is set to expand by 6.1% in 2018, according to the US Energy Information Administration, Reuters reports, making the country an increasing important oil market.

Saudi Aramco has also expressed interest in investing in the Indian economy, according to Zawya.