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Iran-Armenia Gas Pipeline Launched

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  • Iran-Armenia Gas Pipeline Launched

    IRAN-ARMENIA GAS PIPELINE LAUNCHED

    Regnum, Russia
    March 20 2007

    Iranian natural gas started to flow to Armenia through the new pipeline
    launched yesterday, March 19, following the opening ceremony attended
    by presidents of Armenia and Iran Robert Kocharyan and Mahmoud
    Ahmadinejad. Present also were high-ranking officials from both
    countries. REGNUM presents photographs from the ceremony.

    As it has been reported earlier, the pipeline is being tested, after
    which it will be fully incorporated in the gas-distributing system of
    Armenia. The pipe is 700 mm in diameter; it will deliver to Armenia
    1.1bn cubic meters of natural gas at the first stage of the contract
    and 2.3bn cubic meters after 2019. The agreement is signed for 20
    years. For each cubic meter of the Iranian gas, Armenia is to deliver
    to Iran 3 kWh of energy.

    To achieve the planned volumes of Iranian gas supplies to Armenia,
    the Armenian-Russian ArmRosgazprom Company will construct further
    197 km of the pipeline into the Armenian territory. The first stage
    of the project is estimated at $33mln, of which 75% are lent to the
    Armenian side by the Export Development Bank of IRAN, and the rest is
    to be funded from Armenian budget. The construction's prime contractor
    at this stage of the project is the Iranian Sanir Company.

    ArmRosgazprom on its behalf plans to invest 52bn drams (about
    $144.5mln) in increasing the carrying capacity of the Armenian
    gas-transporting system at the section Kajaran-Ararat. Increasing the
    system's carrying capacity will let import to Armenia about 2.3bn
    cubic meters of Iranian natural gas annually, starting as early as
    in 2008. Today, the system allows import of about 300-400mln cubic
    meters of Iranian gas.
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