Armenia and Iran agree to build US$220 million gas pipeline

Associated Press Worldstream
May 13, 2004 Thursday

YEREVAN, Armenia — Armenia and Iran on Thursday signed an agreement
to build a $220 pipeline that would bring Iranian gas to Armenia in
exchange for electrical power supplies to Iran.

The pipeline, expected to be launched by 2007, will cost Iran up to
US$120 million and Armenia around US$100 million.

The long-awaited signing of the agreement comes after 12 years of
negotiations between the two neighbors.

The project had met resistance on the part of Russia and the United
States. As the world’s leading gas exporter, Russia wanted to preserve
its influence in the region. The United States was uncomfortable with
Armenia’s contacts with Iran.

The building of the Iranian side of the pipeline will by financed by
the country’s national gas company, while companies have yet to bid
for the construction of the Armenian side.

From: Emil Lazarian | Ararat NewsPress