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Feasibility studies on tying together a network of pipelines that could carry natural gas to Austria from Iran have received EU funds, the general manager of OMV in Iran said on Wednesday.
"We received EU funds for a feasibility study," said Klaus Angerer whose company is leading a consortium of five companies that plan to take Middle East gas through Turkey and eastern Europe.
Angerer admitted the pipelines would need heavy investment but said Europe was eager for a new gas route to safeguard security of supply.
Angerer said OMV had forged its reputation by being the first company to bring Soviet gas to western Europe in the late 1960s and hoped to perform a similar feat from the Middle East.
OMV late last year pulled out of a major oilfield development project in Iran but is maintaining its presence to follow exploration work in the Mehr block in the Zagros region.
Angerer said drilling in the block should start there within weeks.

Copyright Reuters, 2004

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