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Armenia Negotiating Iranian Gas Supplies

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  • Armenia Negotiating Iranian Gas Supplies

    ARMENIA NEGOTIATING IRANIAN GAS SUPPLIES

    Interfax News Agency
    Russia & CIS Business and Financial Newswire
    October 7, 2008 Tuesday 2:14 PM MSK
    Russia

    Armenia and Iran are negotiating the schedule for Iranian gas exports
    to Armenia.

    An Armenian delegation is currently in Iran to reach an agreement on
    the issue, Armenian Energy Ministry spokeswoman Lyusine Arutyunyan said

    Iran has proposed beginning deliveries on October 13. Armenia will
    officially respond to the proposal this week, Arutyunyan said.

    It was reported earlier that Iran and Armenia began operating a gas
    pipeline linking the two countries last year. Initial capacity on the
    pipeline is 450 million cubic meters a year, subsequently increasing to
    2.3 billion cubic meters a year. Gas is not currently being delivered
    on the pipeline. Most of the gas from the pipeline will be supplied
    to Armenian power plants, with electricity being exported to Iran
    along two high-voltage transmission lines (construction of a third
    line is scheduled to begin later in 2008). Armenia can use any excess
    gas for internal needs.

    The arrangement provides some diversification of gas supplies for
    Armenia, which has relied exclusively on Russia gas shipped through
    Georgia.

    Armenia and Iran have stepped up cooperation in the fuel and energy
    and infrastructure in recent years.
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