BERLIN (AFP) -- German energy giant E.ON plans to work with Iran on gas projects, despite opposition from Europe and the U.S. to Tehran's nuclear activities which may come to a showdown at the UN Security Council, the German financial newspaper Handelsblatt reported.

"We cannot deny that Iran has the second largest gas reserves in the world," E.ON boss Wulf Bernotat told the paper, according to an advance copy of an interview to be published Monday.

E.ON has been looking into cooperating in the Nabucco gas pipeline project which is still at the negotiation stage.

The pipeline would deliver gas to Europe from Iran via Turkey.

International tensions have risen over Iran's plans to resume sensitive nuclear work this week. The western powers are worried that Iran's uranium enrichment activities may be used to develop nuclear weapons, though Tehran says its program is for peaceful purposes to generate nuclear energy.

EU, U.S., Chinese and Russian officials are due to hold unprecedented talks on the crisis in London on Monday.