China ready to invest in combinedcycle power plants in Irans Khuzestan

China ready to invest in combined-cycle power plants in Iran’s Khuzestan

TEHRAN – Chinese investors are prepared to fund the construction of combined-cycle power plants in Iran’s energy-rich Khuzestan province to help address the country’s energy imbalance and boost regional economic development, a Shanghai Cooperation Organization (SCO) representative said on Thursday.

Zhao Bin He, the Executive Director of SCO’s Iran Office, made the remarks during a meeting with Khuzestan’s governor and local religious leaders. “We are here to pay our respects to provincial authorities and outline China’s plans for strengthening economic and trade ties, with a particular focus on Khuzestan,” Zhao said.

He highlighted the historical and enduring relationship between Iran and China, describing it as built on mutual respect, economic cooperation, and cultural exchange.

“Khuzestan’s strategic position in southwest Iran and its vast economic potential make it a key player in enhancing Iran-China relations,” Zhao added. “With access to the Persian Gulf and proximity to strong regional economies, Khuzestan offers exceptional opportunities for port infrastructure development and maritime transport.”

Zhao reiterated China’s readiness to actively participate in developing Khuzestan’s infrastructure, expanding port capacity, and exploring joint projects in energy, industry, and agriculture.

“We are also open to collaborating on sports infrastructure development in the province,” he added. “Despite sanctions, Iran has achieved remarkable progress in scientific, economic, and political arenas, reflecting the determination and capabilities of its people.”

Iran and China have strengthened their economic relations in recent years, particularly through the 25-year Comprehensive Strategic Partnership Agreement signed in 2021. The deal includes cooperation in areas such as energy, infrastructure, transportation, technology, and trade, with China committed to investing billions of dollars in Iran’s key sectors.

China remains Iran's largest trading partner, with bilateral trade exceeding $14 billion in 2023. Iran exports crude oil, petrochemicals, and minerals to China, while importing industrial machinery, electronics, and consumer goods. Additionally, both countries are partners in major international frameworks, including the Shanghai Cooperation Organization (SCO) and China’s Belt and Road Initiative (BRI), which aim to enhance regional connectivity and infrastructure development.

The energy sector plays a pivotal role in Iran-China cooperation, with Chinese firms involved in developing Iran’s oil and gas fields, as well as power generation projects. Zhao’s announcement of investment plans in Khuzestan aligns with China’s broader strategy to strengthen its presence in the Middle East and help address Iran’s energy needs.

As Iran seeks to attract foreign investment despite international sanctions, cooperation with China provides a vital lifeline for its economic growth and infrastructure development.

EF/MA

source: tehrantimes.com