Iraq has officially awarded a contract to China National Chemical Engineering Company (CNCEC) involving the construction of an oil refinery with an output capacity of 300,000 bpd, the official Iraqi news agency INA said on Thursday.

The contract  includes the construction of a petrochemicals plant with a capacity of 3 million tonnes per year and a 2,000-MW power station.

The three projects are located near Faw Port, which is under construction in South Iraq and is slated to be one of the world’s 20 largest container terminals.

“This project is one of the most important economic projects in Iraq…It will largely support refining and petrochemicals industries in the country,” Prime Minister Mohammed Al-Sudani said after the deal was signed in Baghdad on Wednesday.