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Georgia Tempted By Iran-Armenia Gas Project - Ambassador

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  • Georgia Tempted By Iran-Armenia Gas Project - Ambassador

    GEORGIA TEMPTED BY IRAN-ARMENIA GAS PROJECT - AMBASSADOR

    Yerkir
    17:23 | 20/ 03/ 2006

    YEREVAN, March 20 (RIA Novosti, Gamlet Matevosyan) - Georgia is
    interested in a project to transport natural gas from Iran via Armenia,
    a Georgian diplomat said Monday.

    "We are interested in the project to construct an Iran-Armenia
    pipeline. However ... the pipeline being built has a smaller diameter
    than was expected at 700 mm," said Revaz Gachechiladze, Georgia's
    ambassador in Armenia.

    If constructed, the pipeline would not be enough even for Armenia,
    he said, adding that both Georgia and Armenia would benefit from
    transit using a pipeline of larger diameter.

    The agreement to build the 141-km pipeline was signed in May 2004,
    and will cost an estimated $210-220 mln, including $120 mln for the
    Armenian section. Construction started in Armenia November 30, and
    the project is to be finished by January 2007.

    Under the agreement, Iran will supply Armenia with 36 bln cubic meters
    of natural gas over 20 years, with an option to extend the contract
    for five years and increase total supplies to 47 bln cu m.

    The natural gas will be used for electricity generation for Armenia's
    domestic needs and for export to Iran.

    Iran began natural-gas supplies to Georgia via Azerbaijan to ease
    a crisis that erupted amid freezing temperatures in January after
    explosions on a pipeline in Russia, previously Georgia's only
    supplier. However, frequent supply interruptions due to technical
    failures in Azerbaijan have caused problems with the transit.
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