Iran-China Signs Gas Deal

Source:

"Some 14% of China's gas is imported from Iran."

Iran's Liquefied Natural Gas (LNG) Company and a Chinese consortium have signed a $3.3-billion deal to produce some 10.5 million tons of LNG annually from Iran's offshore South Pars gas field, the official Iranian Students News Agency (ISNA) reported.

This is the second deal signed between Iran and China so far this year after a $1.7-billion deal was signed in January for the development of the North Azadegan gas field.

The South Pars field is sometimes described by geologists as the world's largest natural gas reserve and holds some eight percent of the world’s gas reserves.

Some 14% of China's gas is imported from Iran. China also holds a permanent seat on the United Nations Security Council and has the power to veto sanctions that might be imposed on Iran.

The deal comes just two days after U.S. President Barack Obama's administration renewed sanctions against Iran that have been in place since the 1990s, which bars companies operating from the U.S. from doing more than $10 million a year of business in Iran.

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