Monday, Jun 29, 2009

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DOHA (Zawya Dow Jones)--Iran is in discussions with European countries on how much gas it can supply the Nabucco pipeline, a top Iranian energy official said Monday.

"For the Nabucco pipeline to work in full capacity Iran must contribute," said Hojatollah Ghanimifard, Iran's candidate to head the Gas Exporting Countries Forum, or GECF.

"At the moment we are discussing with the Swiss, Austrians and others on the amount of gas Iran can contribute," Ghanimifard said, adding Iran has tremendous gas reserves. Ghanimifard said Iran is currently a net exporter of natural gas, exporting about 10 billion cubic meters a year and importing between 6-8 billion cubic meters.

Ghanimifard dismissed media reports that the U.S. doesn't want Iran to contribute to the Nabucco pipeline.

"I haven't seen any formal statement from officials in Washington," he said.

Ghanimifard said Russia is still in discussions for oil and gas investments with Iran.

"Mainly they are interested in the south west of Iran and one subject we discussed is their interest to get involved in the gas pipeline in Pakistan," he said. "We hope the pipeline will be ready by July."

This will be built by OAO Gazprom (GAZP.RS) and would open the way for gas to be supplied to India.

"The good experience of Gazprom will be of help both in Pakistan and in future for India," he said, but added Iran won't be competing against Qatar and Russia.

"There is a misperception that those who have gas have to supply according to their upstream facilities but we are not in a position to compete," he said. "The presence of Iran in the European market doesn't mean we are going to push Russia into the corner as gas demand will increase incrementally year by year."

-By Tahani Karrar, Zawya Dow Jones; +971 4 364 4965

(END) Dow Jones Newswires

29-06-09 1619GMT