A USA 14 billion gas deal has been struck between Iran and Malaysia.

Reuters have reported that a deal involving a project to produce liquefied natural gas, and the development of two gas fields, has been signed with Malaysia’s SKS group, and Iran.

The deal is not the first to be made between the two, in December 2007 a multibillion dollar gas development contract was struck.

The National Iranian Gas Exporting Company and SKS had reached a preliminary USA 16 billion deal in Janurary 2007 to develop the southern Golshan and Ferdows gas fields and build plants to produce LNG.

However, a spokesman for the National Iranian Gas Exporting Company said those contracts concerned upstream development of the fields, while the latest signing concerned midstream development and an LNG plant.

According to oil minister of Iran Mr Gholamhossein Nozari, the development of Golshan and Ferdows gas fields will be based on a buy back contract, and it was also agreed for Malaysia to invest in and build an LNG plant.

Iran’s buy back oil and gas deals have been unpopular with foreign investors.

Firms hand over operations of fields to the National Iranian Oil Company after development and receive payment from oil or gas production for a few years to cover their investment.