Iran and the UAE have signed a preliminary agreement for exports of compressed natural gas (CNG), an official has said.

The two countries reached a final agreement under which Iran will transport gas on board CNG containers to the UAE, deputy head of the National Iranian Oil Refining and Distribution Company Mansour Riahi said.

Iran’s natural gas will be condensed in Assaluyeh on the Persian Gulf coast and carried by 40-foot carrier ships by the private sector, the Mehr news agency quoted him as saying.

Riahi said another preliminary agreement for sales of CNG has been signed with Pakistan, although it will take time to implement this new method for gas exports.

Iran and the UAE have already a gas deal but it has run into trouble amid claims of kickbacks and other corruption.

The deal with UAE’s Crescent Petroleum was signed in 2001 for exports of 17 million cubic meter of gas per day from Iran’s Salman field in the Persian Gulf for 25 years.

Critics of the deal maintain that the price agreed is 14 times below the market value.

The UAE is one of Iran’s largest trade partners. It is a major gateway for re-export of goods to Iran but business has wilted under US-led sanctions.

Trade stood at $8.5 billion in 2013 but fell to $5 billion in 2014 due to the sanctions.

Strong trade ties trump a series of problems which have dogged diplomatic relations and the emirate is eying the rolling back of sanctions on Iran which could unleash a new wave of cash.

Dubai is home to an Iranian diaspora of half a million but many of them have seen their bank accounts shut down under the sanctions regime.

By Press TV