Monster LNG Transaction in Works

Chinese oil giant Sinopec is in talks over a landmark multi-billion dollar deal with Iranian firms to import LNG from the Middle Eastern nation, in return for the right to exploit some of the country's richest oilfields.

The move, which would be one of the biggest LNG purchase transactions in the world, was revealed by Iranian Vice-President Mohammad Sattarifar.

Negotiations on the deal, which would give a major lift to trade between the two countries, come after Zhuhai Zhengrong - one of China's four State-owned oil traders - signed a Memorandum of Understanding last month to import 110 million tons of LNG from Iran over 25 years.

Sinopec is in talks with the National Iranian Gas Export Company (NIGEC) and the National Iranian Oil Company (NIOC) to annually import at least 5 million tons of LNG from Iran, Sattarifar said.

In exchange, Sinopec will be allowed access to a major Iranian oilfield.

Senior Sinopec executives will visit Iran next month to continue the talks, Sattarifar added.

"All Chinese companies are welcome to market Iranian LNG," said Sattarifar.