Oil Report

Iran signs 1 bln eur deal with German firm-report

TEHRAN, Jan 19 (Reuters) - A state-owned Iranian engineering company has signed a 1 billion euro ($1.44 billion) deal with a German firm to help improve Iran’s gas distribution grid, a semi-official news agency reported on Tuesday.

Mehr News Agency, citing the head of Iran’s Gas Engineering and Development Company, did not name the German firm which it said had agreed to manufacture, install and commission 100 gas-fuelled turbines and turbo-compressors. It did not say when the contract was signed.

The report came a day after German Chancellor Angela Merkel said that Iran faces further sanctions unless it changes stance in talks over its nuclear programme. ($1=.6945 Euro) (Reporting by Hashem Kalantari; writing by Fredrik Dahl; editing by Jon Loades-Carter)