ARMENIA, IRAN SIGN MOU TO INCREASE ENERGY SECTOR CO-OPERATION
BYLINE: Andrew Neff
Global Insight
June 1, 2011
Armenia and Iran have signed a memorandum of understanding (MoU)
geared to increase their co-operation in the energy sphere, including
joint construction of a third electricity transmission line between the
two neighbouring countries. Armenia’s ARKA news agency reports that a
transmission cable with a capacity of between 500MW to 800MW would be
built to facilitate increased power trading between the Armenian and
Iranian grids. Iran’s IRNA news agency said that construction of the
transmission cable, which Iranian energy minister Majid Namjoo said
would cost approximately USD110 million, would begin within two weeks,
with the line slated to be completed and operational by mid-2012. Also,
Armenian energy minister Armen Movsisyan said that costs for a planned
180-MW hydropower plant (HPP) on the Arax River, which divides Iran
and Armenia, have risen to between USD450 million to USD500 million,
up from an earlier estimate of USD323 million (seeArmenia – Iran:
17 September 2010:).
Significance:The energy sector MoU was signed in the context of the
latest joint economic committee meeting between representatives of
the two countries’ governments. The agreement on the new transmission
line follows a deal earlier this year that will see construction of a
365-km fuel pipeline connecting Armenia and Iran (seeArmenia – Iran:
16 February 2011:). Economic co-operation between the two countries,
particularly in the energy sector, has increased in recent years as
Iran’s political isolation has increased due to tighter international
sanctions against the ruling regime over its controversial nuclear
programme, while the Turkish-Azeri blockade of Armenia has increased
that country’s dire energy situation, prompting Armenia to turn to Iran
for more of its energy needs. Armenia and Iran previously inaugurated
a gas pipeline connection that allows Armenia to import gas from Iran,
reducing Armenia’s vulnerability to disruptions in Russian gas imports,
which must first transit Georgia before entering Armenia.
From: Emil Lazarian | Ararat NewsPress
Disclaimer: This article was contributed and translated into English by Emil Lazarian. While we strive for quality, the views and accuracy of the content remain the responsibility of the contributor. Please verify all facts independently before reposting or citing.
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