Iran-Armenia gas pipeline construction to start this year

March 30 2004


YEREVAN, MARCH 30, ARMENPRESS: Negotiations on the construction of
Iran-Armenia gas pipe-line are in their final phase, Armenian Energy
Minister Armen Movsisyan said March 29. He noted that Gas Export
National Company will build the Iranian section of the pipe-line
Armenian will build its section. Initial estimates show that some 100
million USD will be spent to build the pipeline on the territory of
Armenia. A little more money is needed to build the pipe-line on the
Iranian side, the minister said.
The final agreement will be signed in April during when Iranian
Minister of Gas and Oil is expected to visit Armenia. The agreement
envisages that the construction will start later this year and is
expected to last 20 months.
The sides have agreed on the volume, price and other technical
issues of gas deliveries. These matters can be discussed after
signing the agreement. However the conditions are acceptable, the
minister noted.
In Armenia a new pipe-line will be built in Agarak-Kajaran. In all
other parts, capacities of old pipe-lines will be strengthened, A.
Movsisyan said.
Gas supplies to third countries was not officially negotiated.
Neither EU nor any other country has allocated financial means for
that. However, interested countries have expressed willingness to
participate in the construction. Presently, several Russian, Chinese,
Italian companies negotiate with the Armenian side.
Speaking on the importance of the pipe-line, the minister noted
that it facilitates the energy security in the country, provides with
stable sources of gas and is an energy guarantee for prospective
We can’t look at the gas pipe-line as a precondition for the
closure of ANPP, the minister said, as the gas pipe-line is not a
source of alternative energy.