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  • Paper debates pros and cons of selling Armenian-Iran gas pipeline to

    Paper debates pros and cons of selling Armenian-Iran gas pipeline to Russia

    Ayots Ashkar, Yerevan
    8 Jul 06

    Excerpt from K.Beglaryan's report by Armenian newspaper Ayots Ashkar
    on 8 July headlined "What will be the destiny of the gas pipeline?"

    The construction of a gas pipeline between Iran and Armenia is expected
    to be finished by the end of the year. And the exploitation of it
    will begin from next year, at best. We have recently noticed a flurry
    of activity around this issue. It began after the deputy chairman of
    Russia's gas giant, Gazprom, Aleksandr Ryazanov, announced plans to
    acquire the Iran-Armenia pipeline. This is not new. But the Armenian
    party officially denies this. It is only natural that Gazprom wants
    to buy the gas pipeline as it provides Armenia with gas and is a
    co-owner of the local Armenian gas distribution network. Moreover, the
    Iran-Armenia gas pipeline is of an important strategic significance. By
    this, Armenia would first of all settle the problem of an alternative
    gas supply route.

    It is very important to our state given that the situation in the
    region is unstable. On the other hand the gas pipeline has serious
    prospects. In this context it seems illogical to hand over the
    Iran-Armenia gas pipeline to a third party taking into account the
    fact that Armenia managed to get an agreement for its construction
    with difficulty.

    [Passage omitted: reported details on expected volume]

    Russia's interest in this gas pipeline is only natural as it is
    anxious not to lose the Armenian market. Armenia is expected to barter
    electricity for Iranian gas. That is to say, in this way Armenia
    would settle part of its problem with the exploitation of the Armenian
    energy system, the production of extra electricity and its sale. This
    would give a serious boost to the energy sphere. Finally, it is not
    so important whether the gas pipeline will be controlled by the state
    or will be sold. In fact, not much will change because of that. The
    Iran-Armenia gas pipeline should be used as effectively as possible.

    Naturally, there is no sense in selling the Armenian section of that
    [pipeline] to a third party.

    [Passage omitted: reiterates the point]

    This does not at all mean that the sale of the gas pipeline should
    be completely ruled out. Armenia might have to think about its sale
    if that would open up serious prospects for the country, i.e., the
    gas pipeline would be turned from a local into a regional one. The
    Iran-Armenia gas pipeline has such potential and it should not be lost.

    From: Emil Lazarian | Ararat NewsPress
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