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TEHRAN: Iran-Armenia gas pipeline inaugurated

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  • TEHRAN: Iran-Armenia gas pipeline inaugurated

    Tehran Times, Iran
    Dec 3 2008

    Iran-Armenia gas pipeline inaugurated


    Armenia officially completed on Monday the construction of a natural
    gas pipeline from neighboring Iran which could reduce its heavy
    dependence on Russian energy resources and significantly boost its
    electricity exports.


    It remained unclear, however, when Iranian gas could start flowing
    into the country.

    The pipeline's second and final Armenian section was inaugurated in
    the presence of President Serzh Sarkisian and Alexei Miller, chairman
    of Russia's Gazprom giant. The two men, joined by other Armenian,
    Russian and Iranian officials, watched as workers welded together its
    last pipes.

    Miller's presence at the high-profile ceremony underscored the fact
    that the pipeline will be controlled by the ArmRosGazprom (ARG)
    national gas distribution company in which Gazprom holds a controlling
    stake. ARG has financed and carried out work on the 197-kilometer
    stretch running through the country's mountainous Syunik region.

    In a speech during the ceremony, Miller welcomed the completion of the
    `very important project.' He said its implementation testifies to a
    `high level of political cooperation between Russia and Armenia.'

    Former President Robert Kocharian was also in attendance. Kocharian
    had inaugurated the pipeline's first, 41-kilometer section together
    with Iranian President Mahmoud Ahmadinejad in March 2007.

    Speaking to the journalists, Energy Minister Armen Movsisian said the
    pipeline will undergo technical testing and be ready to pump Iranian
    gas within weeks. But he again avoided setting any dates for the start
    of Iranian gas supplies.

    The new pipeline's operational capacity of approximately 2.3 billion
    cubic meters of gas per annum essentially matches the annual volume of
    Armenian gas imports from Russia that are carried out via
    Georgia. With Russian supplies meeting Armenia's needs, the bulk of
    Iranian gas is expected to be converted into electricity that will
    then be exported to the Islamic Republic.

    As Movsisian pointed out, the pipeline would be vital for Armenia's
    energy security in case of `force majeure situations.' The minister
    clearly referred to a possible disruption or termination of Russian
    gas deliveries to Georgia that would almost certainly affect Armenia
    as well.

    The prospect of a cut-off in Russian supplies has become even more
    real since the August war between Georgia and Russia. A senior
    Georgian official predicted last month that the Russians will at least
    cut back on those supplies this winter.
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