China to invest in Iranian refining sector?

A friend passes on an interesting tidbit in light of recent discussion on Iran refined product sanctions, Iran's underdeveloped refining sector and China's escalating quest for resources.
On July 13, Iran’s Ministry of Oil announced that China had agreed to invest up to $40 billion in Iran’s oil refining industry (the announcement is yet to be confirmed by China).

According to the announcement, China will construct the new Hormoz refinery in southern Iran, which will be able to produce 300,000 bbl/day of gasoline. China is also supposed to modernize Iran’s old Abadan refinery on the shores of Persian Gulf in order to increase it capacity, which at some point was the world’s largest refinery. Given China’s large investment in Iran’s energy sector, it is likely that it will veto any United Nations Security Council (UNSC) Resolution against Iran calling for tough sanctions, particularly in the oil and natural gas sector.
A little fishy if the announcement still hasn't been confirmed by China (I wasn't able to find evidence one way or the other), but still an interesting possibility.

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