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  • Jan 21st, 2010
  • Comments Off on Iran in billion-euro gas deal with Germany
Iran has signed a one-billion-euro (1.44-billion-dollar) deal with a German firm to build 100 gas turbo-compressors, an industry official said in newspapers on Wednesday. The contract provides for the unnamed German firm to transfer the know-how to build, install and run the equipment needed to exploit and transport gas, said Iran's Gas Engineering and Development Company head, Ali Reza Gharibi.

The German company has already delivered 45 such turbo-compressors to Iran, Gharibi said, according to Iran Daily. Industry experts said he was apparently referring to Siemens. But the National Iranian Gas Company (NIGC) denied the signing of a deal. The NIGC spoke of a contract with an "Iranian company to build 100 turbo-compressors in Iran using a foreign partner's know-how," without naming the firms.

The reported 2010-2015 deal for material not under an international embargo comes as the Islamic republic faces the threat of new financial, technological and international trade sanctions over its disputed nuclear programme. World powers are weighing sanctions which would boost existing bans on the transfer of material and technology that allows Iran to develop or export its oil and gas resources. Iran has the world's second largest proven global gas reserves after Russia but so far has played only a minor role on the gas export market.

Copyright Agence France-Presse, 2010


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