Armrosgazprom seeks involvement in Iran-Armenia gas pipeline

Armrosgazprom seeks involvement in Iran-Armenia gas pipeline

May 24 2004

Yerevan. (Interfax) – Armrosgazprom intends to be part of the building
and operation of the gas pipeline running between Iran and Armenia,
Armrosgazprom general director Karen Karapetyan has told the press.

The company would also “like to take on the building of the new gas
pipeline and its further exploitation,” Karapetyan said. “We are a
very ambitious company, and aspire to involvement in this serious
project,” he said.

This is now being discussed with Armrosgazprom founders Gazprom (45%,
worth $280 million), the corporation Itera (10%) and the Armenian
Energy Ministry (45%).

As reported earlier, the Armenian government is working on finding
funding for its role in the Armenian-Iranian project. Actual investor
proposals have yet to be announced.

Final agreement between the two countries on this pipeline was inked in
Yerevan on May 13. The document provides for shipments of 20 billion
cubic meters (bcm) of Iranian gas over twenty years in exchange for
electricity produced in Armenia.

The 700-mm diameter pipeline will run 141 kilometers and cost an
overall $210-$220 million to build. It will initially pump 1.1 bcm
per year, and that will steadily increase to 2 bcm. The gas will be
used by Armenian power plants to make and export electricity to Iran
and Georgia.