Armenia, Iran to start gas pipeline construction

June 28 2004

Armenia, Iran to start gas pipeline construction

Yerevan. (Interfax) – Armenia and Iran intend to immediately begin the
construction of a gas pipeline between the two countries, says a
report from the Armenian presidential press service.

The report discusses the results of a visit by an Armenian delegation
headed by Artashes Tumanyan, who heads the Armenian presidential
administration and is co-chairman of the bilateral intergovernmental
commission on economic cooperation, to Iran on June 21-24.

The terms for starting the construction are not given in the
statement. A source in the Armenian government told Interfax that it
will probably be decided before the visit of Iranian President
Mohammad Khatami to Yerevan, which is scheduled for September.

The agreement between Iran and Armenia on construction of the pipeline
was signed in Yerevan on June 13, 2004. The document envisages
supplying 36 billion cubic meters of Iranian gas to Armenia over 20
years in exchange for electricity.

The length of the pipeline will be 141 kilometers, 100 of which will
be located on Iranian territory. The total estimated construction cost
is $210-$220 million. It is expected that gas supplies to Armenia will
begin before January 2007.