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First Part Of Armenian Pipeline Opens

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  • First Part Of Armenian Pipeline Opens

    FIRST PART OF ARMENIAN PIPELINE OPENS

    BusinessWeek
    March 19 2007

    Iranian President Mahmoud Ahmadinejad and his Armenian counterpart
    on Monday formally opened the first Armenian section of a natural
    gas pipeline linking the two countries.

    Ahmadinejad and Armenian President Robert Kocharian inaugurated the
    25-mile section in the town of Meghri, just over the border from Iran.

    "This is more proof of our friendship," Kocharian said at the ceremony,
    which was delayed by hours because rain and fog prevented a helicopter
    flight that was to transport Ahmadinejad. He arrived by road.

    Under the first stage of the project, Iran is to deliver up to 14
    billion cubic feet of gas a year; when the pipeline is completed and
    extends to the capital, Yerevan, the volume could rise to 88 billion
    cubic feet a year.

    The project was launched in 2004 after more than a decade of
    negotiations.

    Russia, which supplies most of Armenia's gas, had objected to the
    project. Armenian officials said last year they were discussing the
    prospect of Russia's natural-gas monopoly Gazprom purchasing the
    Armenian section of the pipeline from Iran.

    Landlocked Armenia has developed its relations with Iran amid
    economic troubles caused by the closing of its borders with Turkey
    and Azerbaijan in the wake of the conflict over Nagorno-Karabakh,
    a region of Azerbaijan occupied by Armenian and ethnic Armenian
    Karabakhi forces.

    Iran has also sought projects and influence in other parts of the
    former Soviet Union, mostly in Central Asia.

    Last year, Ahmadinejad opened an Iranian-financed tunnel improving
    connections between impoverished Tajikistan's north and the capital
    region. Tehran has focused mostly on transport and infrastructure
    projects and restoring historically close cultural ties.
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