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Armenia starts construction of gas pipeline from Iran

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  • Armenia starts construction of gas pipeline from Iran

    Agency WPS
    The Russian Oil and Gas Report (Russia)
    March 16, 2005, Wednesday

    ARMENIA STARTS CONSTRUCTION OF GAS PIPELINE FROM IRAN


    Armrosgazprom (a joint venture of Gazprom and the government of
    Armenia) plans to start construction of the Armenian extension of the
    Iran-Armenia gas pipeline in a month. On March 11, head of the
    company Karen Karapetyan reported that the company had to change the
    initial project a little, for example, making provisions for "some
    objects" along the route. According to Karapetyan, by the end of
    March the Iranian party will present the final financial calculations
    to Armenia and will approve the new project.

    The main contract for construction of the Iran-Armenia gas pipeline
    was signed in May 2004. Construction of the pipeline between Armenia
    and Iran should be completed by January 1, 2007. In the first stage
    Iran should supply 1.1 billion cubic meters of natural gas a year to
    Armenia and starting from 2019 it should supply 2.3 billion cubic
    meters annually. The contract was signed for 20 years. The project is
    estimated at $200-250 million. Its first phase includes construction
    of 100 kilometers of pipeline on Iranian territory and 41 kilometers
    on Armenian territory (Megri-Kadzharan), which will enable Armenia to
    receive 1.5 million cubic meters of gas per day. The second phase
    includes construction of the Kadzharan-Sisian-Dzhermuk-Ararat
    extension. Armrosgazprom and several foreign companies united into a
    consortium are going to participate in construction of this
    extension. Negotiations are nearing completion and very soon the
    Armenian government will name the contractor for construction of the
    second extension of the Iran-Armenia gas pipeline.

    In early March, Armrosgaz was named the winner of the tender for
    construction of the Megri-Kadzharan extension. The Iranian company
    Sanir, project contractor, already completed preparation of the
    technical project, geological and mapmaking documentation. Sanir will
    also supply pipes and equipment. According to Karapetyan, use of the
    gas pipeline for transit purposes is not planned and the scheme "gas
    in exchange for electricity" will enable Armenia to cover its
    domestic needs.

    Source: Vremya Novostey, March 14, 2005
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