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Sinopec hopeful of Iran breakthrough

Chinese giant Sinopec is still in talks with natural gas suppliers, including Iran, and hopes for a breakthrough in the near future, a top company official said today.

"We are seriously talking with relevant parties and hope for progress in the near future," Liu Enxue, vice president of Sinopec's gas unit, told Reuters on the sidelines of the China Gas Summit conference. He did not elaborate.

In 2004, Sinopec signed a preliminary deal worth as much as $100 billion with Iran to import 10 million tonnes of liquefied natural gas a year for 25 years. In return the company was to take the lead to develop the huge Yadavaran oilfield.

But little progress has been made since as th parties differ widely in their estimates of the reserves of the field.

Sinopec is also negotiating with some South-East Asian gas companies to secure LNG supplies to feed the new gas terminals it is building in southern China, Liu said.

Meanwhile, in a report posted on the State-owned Assets Supervision & Administration Commission's website, Sinopec said it expects natural gas output in 2006 to rise 11.5% to 7 billion cubic metres.

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