TEHRAN, Nov. 29 (Mehr News Agency) - Iran and China failed to reach a consensus on Iranian LNG purchase during their first round of discussions held here at Iran's Oil Ministry on Wednesday, an informed source with the ministry said.

Initial negotiations with Sinopec Group over the purchase of Iran's liquefied natural gas (LNG) to China gave way to no result, the source who wanted not to be identified told the Mehr News Agency.

The two sides mainly disagreed on price, the source said, adding, further talks are needed in this regard.

In October 2004, Iran and Sinopec signed an initial deal worth $100 billion under which China will buy 250 million tons of LNG from Iran over a 25-year period. In return, Sinopec will help Iran develop one of its giant oilfields, Yadavaran in southwestern province of Khuzestan.

Agencies last week reported the managing director of the National Iranian Oil Company (NIOC) as saying that all elements of the contract with Sinopec have been finalized and the deal is ready to be signed.

Moreover, Reuters on November 27 reported the spokesman for Royal Dutch Shell that giant oil company eyes to take a stake in the project to develop Yadavaran Oilfield. Shell has assisted Sinopec to prepare technical proposal for the field, the spokesman articulated.

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