Iran's state-owned gas company and a Chinese consortium signed a multi-billion dollar deal to produce liquefied natural gas in the Islamic republic's South Pars field on March 14. The deal, worth $3.39 billion, was for an annual production of 10.5 million tonnes of LNG. In January 2009, both the countries signed a separate $1.76 billion contract for the initial development of the North Azadegan oil field in western Iran. The development of South Pars field, which holds about eight percent of world reserves, has been delayed due to shortage of investment in a country facing severe gas needs of its own, especially during the winter months1.

• 1. “Iran, China firms sign 3 bln dollar LNG deal: report,” AFP, March 14, 2009, at http://news.yahoo.com/s/afp/20090314/wl_mideast_afp/iranchinaenergygas