Tehran: Iran begins work on Armenia gas pipeline

IranMania, Iran
May 1 2005

Iran begins work on Armenia gas pipeline

Sunday, May 01, 2005 – ©2005 IranMania.com

LONDON, May 1 (IranMania) – Managing director of National Iranian Gas
Company said that executive operations of the gas export pipeline
project to Armenia has begun, adding that the project will become
operational by early 2007.

Mohammad Mallaki told ISNA that the contractor of the project has
been ascertained. `We began the project as soon as the feasibility
studies ended and the winner of the tender took charge of the
affairs,` he said.

Roknoddin Javadi, who heads the National Iranian Gas Exports Company,
further told ISNA that the gas deal with Armenia has been finalized
and executive operations have started.

He said studies by the Russian company Gazprom on possible gas
exports to Armenia would have no implications on the Tehran-Yerevan
deal.

`Gazprom will be involved mostly in projects related to domestic gas
supply network in Armenia,` he said.

The official further said that a new oil swap deal has been struck
with Azerbaijan.

`Based on the agreement, Iran will transfer gas from Astara to
Nakhichevan and receive the transit fee from Azerbaijan,` he added.

High-profile talks are underway with New Delhi and Islamabad on gas
exports to India via a pipeline crossing Pakistan.

At present, Iran is exporting gas via pipeline only to Turkey.

Turkey, the largest buyer of Iranian gas, began purchases totaling 4
bln cubic meters in 2001 under a 25-year deal. It is expected to
raise its purchase from Iran to 10 bln in 2007 from 6.689 bln in
2005.

Turkey is reportedly preparing to resort to international arbitration
after negotiations failed to settle the pricing of natural gas from
its second-biggest supplier Iran.

The Turkish government said last year it would resort to
international arbitration after Turkish Prime Minister Recep Tayyip
Erdogan failed to persuade Tehran to cut prices.