Germany’s E.on Wants to Buy Iranian Natural Gas

German energy giant E.on has confirmed it is in talks with Iran to buy natural gas — although Germany is currently discussing further sanctions over Iran’s nuclear program with its allies.

Germany has for years been talking about diversifying its natural gas supplies to reduce over-reliance on Russia. But the solution currently being considered by German energy utility E.on may end up being just as controversial — the company wants to buy gas from Iran.
The announcement by E.on that it was seeking a potential deal with Iran to buy so-called “liquid natural gas” (LNG) came on Tuesday. The energy giant is currently seeking a long-term source of LNG for a new terminal it wants to build at Wilhelmshaven on Germany’s coast. LNG, which is delivered by ship rather than by pipeline, gives a utility greater flexibility in choosing which producers to buy from.

Berlin has become increasingly skeptical about the reliability of Russia as an energy supplier as Gazprom, the Kremlin-controlled gas company in charge of most of Siberia’s vast reserves, has repeatedly flexed its muscles in price spats with Russia’s neighbors. But E.on’s interest in Iran comes just as the international community is discussing further sanctions on Tehran for its controversial nuclear program.

“E.on Ruhrgas has for some time been looking into the possibility of obtaining LNG and is in talks with various producers,” said Tatjana Dreyer, a spokeswoman for the utility’s gas division E.on Ruhrgas. “One of the producer countries is of course Iran. The country has the world’s second-largest natural gas reserves.”

The company is clearly aware of the political sensitivity of such a deal. “In our dealings with the country, we are strictly complying with the rules and requirements set out in the German government’s policy,” Dreyer said. “To this end we are in close contact with the responsible government offices.”

Spiegel