Construction begins on Iran section of Iran-Armenia gas pipeline

Oil & Gas Journal
July 23

Construction begins on Iran section of Iran-Armenia gas pipeline

By OGJ editors

HOUSTON, July 23 — ZAO Armrosgazprom has begun construction on the
100 km Iranian section of the $210-220 million Iran-Armenia natural
gas pipeline that will promote gas deliveries from Turkmenistan
through Iran to Armenia (OGJ, Feb. 3, 2003, p. 62). Iran is funding
its section, which is being built by an Iranian contractor, Russia’s
Interfax news agency reported Thursday.

Armrosgazprom, a consortium of Russia’s OAO Gazprom, 45%, Armenia’s
Energy Ministry 45%, and Russia’s Itera 10%, will operate the
Iran-Armenia pipeline.

Gazprom has completed a feasibility study for the Armenian section,
which will extend 41 km from the Iranian border to Kajaran, about 320
km from Yerevan in southeastern Armenia. The $140 million Armenian
section also will include rehabilitation and partial replacement of
parts of the existing Kajaran-Yerevan gas pipeline. Armenia is
seeking funding for its project, and investor proposals have not yet
been announced.

Under terms of an agreement the two nations signed in May, the 700 mm
diameter pipeline initially will deliver 1.1 billion cu m/year of
natural gas to Armenia for 20 years, increasing to 2.3 billion cu m
at the end of the contract, which could be extended by 5 years. The
gas, slated for first delivery in January 2007, will be used to fuel
Armenian power plants that will export electric power to Iran and

From: Emil Lazarian | Ararat NewsPress