Iranian Gas Engineering and Development Company (IGEDC) has signed a 1 billion euro ($1.44 billion) deal with a German firm to help improve nation's gas distribution grid, the IGEDC director said here on Tuesday.
The Mehr News Agency quoted Alireza Gharibi as saying that according to the contract the German firm agreed to manufacture, install and commission 100 gas-fuelled turbines and turbo-compressors. He made no comment on the company''s name.
"The technical knowledge for manufacturing the turbo compressors would be transferred to Iranian experts," he added.
"The German company is to terminate installation of the gas turbo compressors until the end of Iran's fifth development plan," Gharibi said.
"We expect to domesticate the building of the turbo compressors by the end of the contract," he added.
Gharibi said that the same German company has already built and installed 45 other turbo compressors for the National Iranian Gas Company, under another contract.
Germany is still one of Iran's largest trading partners, and over 1,500 German companies do business in Iran. In July 2009, Iran selected Germany's Coperion to participate in the construction of Iran's Rejal Petrochemical Complex.
In April 2009, German Bayerngas, confirmed that it would assist National Iranian Oil Company to develop filling stations that will supply cars with compressed natural gas (CNG).