Interfax
Dec 1 2004

Construction begins on Iran-Armenia gas pipe

Yerevan. (Interfax) - Construction of the 40-km Armenian section of
the Iran-Armenia gas pipeline from the Armenian border city of Agarak
to Kajaran - 320 km southeast of Yerevan, began on Tuesday.

A source in the Armenian Energy Ministry told Interfax that a
ceremony to mark the start of work was held close to Agarak, and was
attended by Armenian Deputy Prime Minister Andranik Margarian and
Iranian Energy Minister Habibullah Bitaraf. The first few meters of
pipeline have already been laid.

According to the Energy Ministry, the gas pipeline will have a
diameter of 700 mm and the 140-km pipeline should be completed in
2006.

The gas transported through the pipeline will be used to produce
electricity at Yerevan Thermal Power Plant, for subsequent supply to
Iran at the rate of 3 kWh per cubic meter of gas. The gas will also
be used to meet domestic demand in Armenia.

The total cost of the Iran-Armenia pipeline and the construction of
the existing pipeline from Kajaran to Yerevan is estimated at $210
million - $220 million. Iranian gas will start to arrive in Armenia
no later than January 2007.