Armenia, Iran sign accord for 20 years of gas deliveries

Armenia, Iran sign accord for 20 years of gas deliveries

IranMania News, Iran
May 15 2004

YEREVAN, May 14 (AFP) – Armenian and Iranian energy ministers Thursday
signed an accord under which Iran will supply 36 billion cubic meters
of gas to Armenia, in exchange for electricity, over 20 years starting
in 2007.

The sides did not elaborate on the gas tariffs set for the deliveries.

Gas will flow into Armenia through a planned pipeline linking the two
neighbours on which construction is to begin at the end of the year.

“The construction of the Iran-Armenia gas pipeline has political and
economic importance for our country and foresees economic benefits
for both of our nations,” Armenia’s Energy Minister Armen Movsysian
said after signing the accord with his Iranian counterpart Bijan
Namdar Zanganeh.

The two countries had already signed an accord over the 140-kilometer
gas pipeline’s construction, at an estimated cost of 220 million

Russia, Ukraine, China and the United States had already voiced
interest in participating in the project, the Armenian minister said.

Movsysian also declared that Armenia was not ready to accept the
European Union’s offer of 100 million dollars to close down the
Metzamor nuclear power station, which Europeans consider dangerous.

Armenia is currently dependent on Russian gas, which is supplied via
a pipeline that crosses through Georgia.

For the annual 1.2 billion cubic meters of Russian gas, Armenia pays
55 dollars per 1,000 cubic meters.