Building costs for Armenian gas pipeline section $140 mln

July 21 2004

Building costs for Armenian gas pipeline section $140 mln

Yerevan. (Interfax) – Russian gas giant Gazprom has completed
feasibility study preparations for the Armenian section of the
Iran-Armenia gas pipeline, which indicate a work cost of roughly $140
million, senior Gazprom executive Alexander Ryazanov said in an
interview with an Armenian media company.

Gazprom is one of the main stockholders in Armrosgazprom, which
intends to be involved in the building and operation of this

The construction work includes laying a 41-kilomenter section of
pipeline from the Iranian border to the two of Kajaran (320 km from
Yerevan in southeastern Armenia), as well as overhauling and replace
parts of the Kajaran-Yerevan gas pipeline.

The project recoupment period is an estimated nine years, Ryazanov

“Financial sources for the project need to be found now, after which
there will be no other problems for construction,” he said.
Possibilities are inter-governmental loans and “the involvement of
Russia,” he said. The Armenian section of the pipeline might also be
built with “Gazprom funds,” he added.

This pipeline is of great strategic value to Armenia in terms of gas
supply and energy security, Ryazanov said. An inter-governmental gas
cooperation agreement is being readied for Armenia and Russia to
sign, he added.

Emil Lazarian

“I should like to see any power of the world destroy this race, this small tribe of unimportant people, whose wars have all been fought and lost, whose structures have crumbled, literature is unread, music is unheard, and prayers are no more answered. Go ahead, destroy Armenia . See if you can do it. Send them into the desert without bread or water. Burn their homes and churches. Then see if they will not laugh, sing and pray again. For when two of them meet anywhere in the world, see if they will not create a New Armenia.” - WS