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news.am, Armenia
Aug 27 2011
Armenia does not want to depend on gas pipeline through Georgia
August 28, 2011 | 01:35
YEREVAN. - WikiLeaks website published another cable from U.S. Embassy
to Armenia. It dwells in details on the construction of the gas
pipeline between Armenia and Iran.
`Armenian officials have again proposed a gas pipeline from Iran to
Armenia as a way to alleviate Armenia's concerns about the future
diversity of energy sources. Other key factors, however, including the
price of gas and the size of the pipeline, do not figure into the
proposed deal, indicating that there is significantly less to the
agreement than it appears and that the pipeline is still more a
farfetched desire of the government than a realizable goal,' the
February 24, 2004 cable reads.
Armenia has long seen a potential gas pipeline from Iran as way to
guarantee their energy supply after the inevitable nuclear power plant
(ANPP).
Armenia's demand for gas from Iran is not strong enough to justify the
expense of building a pipeline. A pipeline only makes sense if the
donor community would pay for it (perhaps in exchange for closing
ANPP), or if the price of gas from Russia were to rise to such levels
that a pipeline would become competitive for private investment.
Anticipating the inevitable closure of ANPP, Armenia expects to pursue
some strategy that reduces its reliance on the gas pipeline through
Georgia.
While an Iran-Armenia pipeline would be more expensive than buying
Russian gas, it may well be the cheapest among Armenia's other
options.
But as long as the Armenian government is unwilling to pass the extra
costs of diverse sourcing on the consumers, and no international
donors are forthcoming, there is little or no possibility of an
Armenian-Iranian gas pipeline project getting off the ground, the
cable reads.
From: Baghdasarian
Aug 27 2011
Armenia does not want to depend on gas pipeline through Georgia
August 28, 2011 | 01:35
YEREVAN. - WikiLeaks website published another cable from U.S. Embassy
to Armenia. It dwells in details on the construction of the gas
pipeline between Armenia and Iran.
`Armenian officials have again proposed a gas pipeline from Iran to
Armenia as a way to alleviate Armenia's concerns about the future
diversity of energy sources. Other key factors, however, including the
price of gas and the size of the pipeline, do not figure into the
proposed deal, indicating that there is significantly less to the
agreement than it appears and that the pipeline is still more a
farfetched desire of the government than a realizable goal,' the
February 24, 2004 cable reads.
Armenia has long seen a potential gas pipeline from Iran as way to
guarantee their energy supply after the inevitable nuclear power plant
(ANPP).
Armenia's demand for gas from Iran is not strong enough to justify the
expense of building a pipeline. A pipeline only makes sense if the
donor community would pay for it (perhaps in exchange for closing
ANPP), or if the price of gas from Russia were to rise to such levels
that a pipeline would become competitive for private investment.
Anticipating the inevitable closure of ANPP, Armenia expects to pursue
some strategy that reduces its reliance on the gas pipeline through
Georgia.
While an Iran-Armenia pipeline would be more expensive than buying
Russian gas, it may well be the cheapest among Armenia's other
options.
But as long as the Armenian government is unwilling to pass the extra
costs of diverse sourcing on the consumers, and no international
donors are forthcoming, there is little or no possibility of an
Armenian-Iranian gas pipeline project getting off the ground, the
cable reads.
From: Baghdasarian