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Armenia Interested In Transcaspian Pipeline Project

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  • Armenia Interested In Transcaspian Pipeline Project

    ARMENIA INTERESTED IN TRANSCASPIAN PIPELINE PROJECT
    By Emil Danielyan

    Radio Liberty, Czech Rep.
    Jan 9 2007

    Armenia is looking to benefit from an ambitious project to build a
    natural gas pipeline that would stretch from Central Asia to Turkey
    and Europe via the Caspian Sea, Foreign Minister Vartan Oskanian said
    on Tuesday.

    The idea of putting in place a new export route for the Caspian
    region's rich hydrocarbon resources was actively promoted by the
    United States in the late 1990s but never got off the drawing board for
    geopolitical and economic reasons. The European Union is now trying to
    revive it as part of a long-term strategy of easing Europe's growing
    dependence on Russian gas.

    The EU hopes that work on the 3,300 kilometer pipeline, dubbed Nabucco,
    will start in 2008 and end in 2011. The pipeline would pump gas from
    Azerbaijan, Turkmenistan and Kazakhstan and have a maximum capacity
    of 30 billion cubic meters per year.

    According to Oskanian, official Yerevan regards the $5.8 billion
    project, which was formally approved by five EU nations last June,
    as an opportunity to further diversify Armenia's energy resources
    in the long run. "Armenia will try to have some involvement in that
    project," he said.

    "No practical steps are being taken in that direction yet. But
    negotiations are going on, and we are trying to be involved in
    those discussions in order to ensure the diversification of our gas
    supplies," he added without elaborating.

    Azerbaijan is extremely unlikely to agree to Armenia's participation
    in the project before a resolution of the Nagorno-Karabakh conflict,
    though. Besides, the Transcaspian pipeline would almost certainly
    link up with a newly built pipeline that will soon start delivering
    Azerbaijani gas to Georgia and Turkey, suggesting that it would bypass
    Armenia in any case.

    Armenia will instead be able to receive gas from neighboring Iran
    through a much smaller pipeline. Officials in Yerevan and Tehran say
    work on its first Armenian section has all but been completed. A
    senior Iranian official reportedly said over the weekend that his
    country is ready to start supplies "at any moment."

    But Oskanian insisted that the 40-kilometer facility still needs to
    undergo technical tests. "The pipeline is physically complete. We
    just need to test it." he said, adding that Iranian gas will therefore
    not start flowing into Armenia before March.

    In the meantime, Russia will remain Armenia's sole gas supplier.

    Russian energy companies, notably the Gazprom monopoly, also own the
    country's gas and electricity distribution networks as well as several
    major power plants. Furthermore, the Armenian government is widely
    expected to give Gazprom a controlling stake in the pipeline from Iran.
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