Iran signs $20-billion gas deal with China

TEHERAN, Iran, March 20 (UPI) -- Iran has agreed in principle to sell $20 billion of liquefied natural gas to China over the next 25 years.

Ignoring U.S. energy sanctions on Teheran, the two countries have signed a memorandum of understanding that begins shipping the LNG supplies in 2008, reported Middle East newsline.

The Beijing-based Zhuhai Zhenrong Corp., a spinoff of China's defense and missile contractor, China North Industries Corp. -- the target of U.S. sanctions amid missile sales to Iran -- would get an annual 2.5 million metric tons of Iranian LNG.

China is already a major oil customer of Iran.