China National Offshore Oil Corp. could within two weeks sign an agreement with Iran for a guaranteed supply of liquefied natural gas for three Chinese terminals, two people familiar with the situation said Jan.21.

If concluded, the National Iranian Oil Co. would deliver 10 million metric tons of the gas for three new or expanded LNG terminals in China. The gas would come from Iran's North Pars project, the sources said.

"Iran is our target place for sourcing LNG," said a sales manager with Guangdong Zhuhai Jinwan LNG Corp., which is working with CNOOC in developing one of the terminals.

But analysts are skeptical Iran will be able to secure liquefaction technology to meet its commitment, as it has struggled to seal agreements on its natural gas reserves with foreign investors because of spiraling costs and U.S. sanctions.