2010-11-25 10:24

HAVANA – China National Petroleum Corp, the country's largest oil and gas producer, has signed a deal to lead a $6 billion refinery expansion project in Cuba, Reuters reported on Thursday.

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A unit of State-owned China National Petroleum Corp expects to begin work in early 2011 on the project that will more than double the refinery's capacity to 150,000 barrels daily and include construction of a liquefied natural gas terminal.

The project is to be funded mostly by China's Eximbank.

For Cuba, the refurbishing of its antiquated refinery in the coastal city of Cienfuegos will provide an outlet for oil it hopes to tap soon in the Gulf of Mexico, while also laying the groundwork for the island to possibly become a key oil transhipment point for the Caribbean basin.

Venezuela Cuba's closest ally, will provide financial guarantees in the form of oil.