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Iran-Armenia Gas Pipeline To Be Put Into Operation Ahead Of Schedule

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  • Iran-Armenia Gas Pipeline To Be Put Into Operation Ahead Of Schedule

    IRAN-ARMENIA GAS PIPELINE TO BE PUT INTO OPERATION AHEAD OF SCHEDULE

    Regnum, Russia
    Oct 26 2006

    Iranian gas will be supplied to Armenia via Iran-Armenia gas pipeline
    ahead of schedule, the High-voltage Electric Lines Company director
    Saak Abramyan, whose company ordered construction of the pipeline's
    Armenian section, stated to a REGNUM correspondent. According to him,
    it is supposed that the pipeline's operation will start on December
    20, 2006 instead of January 1, 2007.

    Also, Saak Abramyan informed that construction works at 38-km section
    of 40-km Megri-Kajaran section had already been finished.

    Construction of the 40-km section is assessed to cost $35mln; 80% of
    the sum will be loaned to Armenian side by Iranian development bank;
    the rest will be grated from own resources.

    It is worth reminding; according to Armenian-Iranian agreement, the
    section's construction, which will guarantee penetration of Iranian
    gas deep into the Armenian territory, should be finished till 1
    January 2007. It will enable connection of Armenian and Iranian gas
    distributing systems and to arrange coordinated functioning. The
    system's preliminary carrying capacity will slightly be inferior to
    amounts, recorded in main Armenian-Iranian agreement. According to
    the latter (signed in May 2004), amount of Iranian gas, supplied
    into Armenia will total 1.1bln of cubic meters at initial stage;
    since 2019 it will total 2.3bln of cubic meters. The agreement was
    concluded for 20 years. In order to reach the planned figures, the
    Armenian side will additionally lay 197 km of pipe, which will pass
    through Kajaran, Sisian, Jermuk, and Ararat settlements.

    Also, it is worth stressing; later in June, the Gazprom Company
    Deputy CEO Alexander Ryazanov stated that the company was going to
    purchase the Iran-Armenian gas pipeline. According to him, the gas
    pipeline's putting into operation will enable guaranteeing Armenian
    gas supply's reliability. "There are problems concerning gas transit
    into Armenia via Georgia because Georgia permits itself unsanctioned
    gas extraction," Ryazanov said.
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