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Armenian FM Says Should Seek Alternative Gas Suppliers

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  • Armenian FM Says Should Seek Alternative Gas Suppliers

    ARMENIAN FM SAYS SHOULD SEEK ALTERNATIVE GAS SUPPLIERS

    RIA Novosti, Russia
    June 28 2006

    TBILISI (Georgia), June 28 (RIA Novosti) - Armenia's foreign minister
    said Wednesday that the South Caucasus country should seek to diversify
    its natural gas suppliers, following Georgia's example.

    In January, Russia doubled the price for natural gas supplies to the
    former Soviet republic from $54 per 1,000 cubic meters to $110 as part
    of its efforts to put the gas market on a free-market basis. But the
    move has put some strain on relations with Armenia, whose struggling
    economy is heavily dependent on Russian supplies.

    "Like Georgia, Armenia should diversify its gas sources," said Vardan
    Oskanyan, who is in Georgia on a two-day visit. "We are currently
    discussing with our Iranian colleagues issues concerning Iranian gas
    supplies to Armenia."

    Georgia now imports natural gas from Iran via Azerbaijan. Supplies
    began in January after explosions on a pipeline from Russia, previously
    Georgia's sole supplier.

    Oskanyan said that the Iran-Armenia gas pipeline would be commissioned
    by January 2007 and added that a mooted trans-Caspian gas pipeline
    to pump gas from energy-rich Central Asia to Turkey and Europe via
    Azerbaijan and Georgia, was also of interest for his country.

    The construction of the 141-kilometer (90 mile) pipeline from Iran
    began in 2004. It will bring Armenia about 36 billion cubic meters
    of gas over 20 years. The natural gas will be used for electricity
    generation for Armenia's domestic needs and for export to Iran.
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