Correction: Iran to sell China US$20bn of LNG

China announced it plans to source US$20 billion of Iranian natural gas over 25 years. Zhuhai Zhenrong Co, a China North Industries spin-off, will buy 2.5 million metric tons of liquefied natural gas from Iran annually beginning in 2008 and increasing in annual volume to five million tons afterwards, lasting for 25 years. In the short term, Zhenrong unit Tianbao (Hong Kong) Energy renewed a contract to purchase 80,000 tons of Iranian fuel oil monthly from April 2004 through March 2005. Zhenrong said it is negotiating deals to set up operations in three Iranian oil fields.