Iran and China will sign a 2.5 billion-euro ($3.2 billion) deal to produce liquefied natural gas in the South Pars gas field.
A consortium of three Chinese companies will finance and implement the project, which is one of the three LNG production projects in South Pars, press tv reported.
The project will be carried out in two stages, each of which will be completed in three years.
The head of Iran LNG Company, Ali Kheirandish, told state broadcaster IRIB that a European firm will also join the project within the next three months.
The National Iranian Oil Company (NIOC) and China's National Petroleum Corp (CNPC) signed a $1.76 billon deal in January on the development of Iran's North Azadegan oil field, which has estimated reserves of six billion barrels of oil.
In 2007, Iran signed a $2 billion deal with China's Sinopec to develop the Yadavaran oilfield.Iran and China's trade volume is estimated at $24 billion. Iran currently provides 13 percent of China's oil and is a major supplier of LNG to the energy-hungry country.
