Swiss energy giant EGL is set to sign a 25-year deal in Teheran on Monday to buy 5.5 billion cubic meters of Iranian natural gas per year, starting in 2011, for a reported €18 billion.

The contract will be the second largest European gas deal, although EGL spokesman Bogdan Preda told The Jerusalem Post, "We are not releasing the value of the deal."

In April, the Austrian energy company OMV signed letters of intent with Iran valued at €22 billion to supply Europe with gas, but that contract has yet to be finalized. US officials are closely scrutinizing the legality of the OMV deal.

Swiss journalist Alexander Hasgall told the Post that Switzerland had "neglected the political meaning of the gas contract and invoked the economic argument" to justify the transaction.

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Critics of the growing number of European-Iranian oil and gas deals argue that Teheran can use the profits for a nuclear weapons program.

Preda, from EGL, told the Post that the EGL was aware of the criticism, but "we say that Europe needs to diversify its supplies of gas."

Swiss Foreign Minister Micheline Calmy-Rey will be present at Monday's signing between EGL and the National Iranian Gas Export Company.

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