Tweet
ARMENIA LOOKS TO EXTERNAL FINANCING FOR CONSTRUCTION OF OIL PRODUCT PIPELINE FROM IRAN
World Market Research Centre
Global Insight
November 11, 2009
Armenian minister for energy and natural resources Armen Moysisian
has said that Russia's Gazprom is planning to finance 10% of the
cost of construction for an oil products pipeline that will connect
northern Iran to southern Armenia. Moysisian told Interfax that the
Russian gas giant will participate in the financing of the pipeline,
which is planned to link Tebriz in north-eastern Iran with Yeraskh in
southern Armenia, via its stake in ArmRosGazprom, the Russian-Armenian
venture that controls Armenia's gas pipeline network. Moysisian said
that most of the financing for the estimated $250US-milion pipeline
will be provided by Iran.
Significance:Construction of the Armenian section of the oil products
pipeline, which will deliver gasoline (petrol) and diesel fuel to
Armenia from an oil processing plant in Tebriz, is expected to get
under way before the end of 2009, according to an Interfax report.
Moysisian said that the Armenia plans to build a storage terminal
in Yeraskh as well, from which the country can distribute oil
products throughout Armenia. Iran is itself struggling with a
domestic production capacity shortage in its refinery sector and
is reliant on imports to meet its demand, but at the same time it
is keen to develop long-term energy supply deals with neighbouring
states where possible, in order to counter its deepening isolation
given international sanctions. Armenia will not be allowed to buy
fuel at Iran's heavily subsidised domestic prices.
World Market Research Centre
Global Insight
November 11, 2009
Armenian minister for energy and natural resources Armen Moysisian
has said that Russia's Gazprom is planning to finance 10% of the
cost of construction for an oil products pipeline that will connect
northern Iran to southern Armenia. Moysisian told Interfax that the
Russian gas giant will participate in the financing of the pipeline,
which is planned to link Tebriz in north-eastern Iran with Yeraskh in
southern Armenia, via its stake in ArmRosGazprom, the Russian-Armenian
venture that controls Armenia's gas pipeline network. Moysisian said
that most of the financing for the estimated $250US-milion pipeline
will be provided by Iran.
Significance:Construction of the Armenian section of the oil products
pipeline, which will deliver gasoline (petrol) and diesel fuel to
Armenia from an oil processing plant in Tebriz, is expected to get
under way before the end of 2009, according to an Interfax report.
Moysisian said that the Armenia plans to build a storage terminal
in Yeraskh as well, from which the country can distribute oil
products throughout Armenia. Iran is itself struggling with a
domestic production capacity shortage in its refinery sector and
is reliant on imports to meet its demand, but at the same time it
is keen to develop long-term energy supply deals with neighbouring
states where possible, in order to counter its deepening isolation
given international sanctions. Armenia will not be allowed to buy
fuel at Iran's heavily subsidised domestic prices.