E.ON may cooperate with Iran on gas projects

BERLIN (AFX) - E.ON AG may work with Iran on gas projects, despite opposition from Europe and the US to Tehran's nuclear activities which may come to a showdown at the UN Security Council, Handelsblatt newspaper said in a report to be published tomorrow.

"We cannot deny that Iran has the second-largest gas reserves in the world," E.ON's chief executive Wulf Bernotat told the paper.

E.ON has been looking into cooperating in the Nabucco gas pipeline project, which is still at the negotiation stage.

"We are looking into this option," Bernotat said.

The pipeline would deliver gas to Europe from Iran via Turkey.

International tension has risen this week over Iran's plans to resume sensitive nuclear work as the western powers are concerned that Iran's uranium enrichment activities may be used to develop nuclear weapons, though Tehran says its programme is for peaceful purposes to generate nuclear energy.

EU, US, Chinese and Russian officials are due to hold tomorrow unprecedented talks on the crisis in London. [e-mail] afp/ms/ak

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