Tehran: Iran has ordered six tankers from China to transport the liquefied natural gas (LNG) it hopes to export from its giant gas reserves, the semi-official Fars news agency reported yesterday.
The order — worth $200 million to $220 million per ship — is a sign that China's economic relations with Iran remain fairly good despite Beijing backing a new draft of UN sanctions meant to pressure Tehran over its uranium enrichment.
Mohammad Souri, managing director of the National Iranian Tanker Co., said Iran usually bought South Korean ships but had judged the Chinese offer better value for money.
In another sign of cordial relations, a Tehran city council official said yesterday that China has granted Iran a $1.23 billion loan for infrastructure investment such as roads, Fars reported.
Unlike Qatar, its neighbour across the Gulf with which it shares the vast South Pars gas field, Iran does not yet produce LNG. The development of Iran's gas industry has been hampered by years of sanctions which have deterred foreign investors.
In a sign of China's growing importance in the Opec member's energy industry, last year the China National Petroleum Corporation clinched a $4.7 billion deal to develop Phase 2 of South Pars, replacing France's Total.
It is also in talks about developing Iran's LNG industry. As China's economy has boomed in recent years, it has used its financial clout, in the form of loans or investments, to strengthen ties with mineral-rich nations.
