DJ Gazprom Buys Controlling Stake In Armenian Pipe

DJ GAZPROM BUYS CONTROLLING STAKE IN ARMENIAN PIPE

Prime-Tass Business News Agency, Russia
November 8, 2006 Wednesday

Russian gas monopoly OAO Gazprom has bought a controlling stake in
a pipeline being constructed between Iran and Armenia, The Times
newspaper reports Wednesday.

Gazprom took a 45% stake in the project, called ArmRosGaz last year.

Gazprom raised its stake to 58% by buying $119 million in shares of
the company over the weekend, the U.K. newspaper said.

The pipeline is expected to be completed later this year.

Construction on the $220 million project began in 2004, and its first
section is set to be completed this year will have an initial capacity
of 1.7 billion cubic meters. There is also the possibility of a second
pipeline being built between the two countries.

It has also been suggested the pipeline could bring gas from Iran to
Europe. Iran has the world’s second largest gas reserves, after Russia.