TEHRAN -- Preliminary studies aimed at building an oil refinery in Chabahar Free Trade Zone (CFTZ) is underway.

The building of an oil refinery with the capacity of 300,000 barrels per day (bpd) in Chabahar Free Trade Zone will be made possible through $2 billion of finance, the Persian service of IRNA quoted the managing director of the trade zone as saying here on Sunday.

The measure is not only aimed at providing fuel for the ships traversing the Persian Gulf region rather, given the government objectives regarding the expansion of the nation’s maritime fleet which would call for the establishment of a fueling station for the vessels, building a refinery in the region is deemed necessary, the official also explained. Moreover, he asserted, our neighboring countries such as Pakistan and Afghanistan lack Iran’s potentials for supplying fuel for the ships in the region.

“Therefore, by delivering the crude oil from other parts of the country to Chabahar and refining it there we would be able to accomplish the task.”