ADVERTISEMENT

Swiss company signs major deal with Iranian gas producer

Energy Trade

Swiss energy trading company EGL has signed a multibillion dollar contract to buy natural gas from Iran's national gas producer over the next 25 years, EGL announced.

According to the contract, the National Iranian Gas Export Company will supply about 5.5 billion cubic meters of natural gas to EGL per annum starting from 2009, which will later be sold to European consumers.

The Swiss Foreign Ministry said the deal is worth between $28 billion and $42 billion. But EGL spokesperson Bogdan Preda said the company would not disclose the concrete figure.

The US government immediately told the Swiss embassy in Washington that the contract is “sending a wrong message” to Iran, as it went against the spirit of the UN sanctions, the Associated Press reported.

But the Swiss government argued that the contract is “totally in line with international laws and UN resolutions.”

Foreign Minister Micheline Calmy-Rey said when attending the signing ceremony of the contract that the deal is a major step forward in diversifying power supplies to Europe.

The deal has to undergo strict scrutiny because Iran is still under United Nations (UN) sanctions. (Xinhua)

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.