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Armenia Looks To Begin Gas Imports This Week After Earlier Delays

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  • Armenia Looks To Begin Gas Imports This Week After Earlier Delays

    ARMENIA LOOKS TO BEGIN GAS IMPORTS THIS WEEK AFTER EARLIER DELAYS

    World Markets Research Centre
    Global Insight
    May 13, 2009

    Armenia's Energy Ministry said yesterday that the country will begin
    receiving gas imports from Iran this week after numerous delays to
    the start-up of a 141-km gas pipeline connecting the two. Ministry
    spokeswoman Lusine Harutunian said that Armenia is to start receiving
    gas today, which will then be used as fuel for a gas-fired power plant
    to generate electricity that Armenia will export back to Iran. The
    two countries agreed on a "gas-for-electricity" plan back in 2002,
    and then built a pipeline connecting the two countries in order to
    implement the deal, but the launch of gas supplies along the pipeline
    has been delayed repeatedly for various reasons.

    Significance:One of the reasons for the slow start to gas exports from
    Iran has been that country's need for gas to support its own demand,
    but also because Armenia's gas deal with Russia's Gazprom reduced
    the urgency of Armenia's need for gas imports from Iran (seeArmenia:
    24 September 2008:). However, last year's war between Russia and
    Georgia, through whose territory Armenia imports gas from Russia,
    highlighted for Armenia the vulnerability of its gas imports from
    Russia. Nevertheless, Russian gas supplies to Armenia are stable now,
    and despite recent work to connect the Iran gas pipeline to Armenia's
    domestic gas distribution system, Harutunian said yesterday that
    Armenia currently has no plans to use the gas from Iran for domestic
    consumption (seeArmenia: 2 December 2008:). Instead, she noted that
    the volume of gas that Armenia receives from Iran will depend on
    Iran's own need for electric power.

    From: Emil Lazarian | Ararat NewsPress
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