"Let's say it is interesting for both sides," Umidjan Israilov, head of foreign relations and investment department at Uzbekneftegaz, told Reuters on the sidelines of an international conference in Seoul on Tuesday. He said negotiations were underway.

"We need transport facilities. There is a Turkeminstan-China pipeline but this is mostly for Turkmenistan gas," he said. "There is no capacity for other gas."

In June, China National Petroleum Corp (CNPC) said it had signed a framework agreement to buy 10 billion cubic metres of natural gas per year from Uzbekneftegaz.

Israilov said a supply volume had yet to be set, but it could be more than 10 billion cubic metres, adding that he expected the two companies to reach a deal this year.