Tehran Times
July 16 2004

Iran May Increase Gas Supplies To Armenia

MOSCOW — The amount of gas being supplied to Armenia under a
bilateral agreement to build a pipeline between the two countries may
be increased by over 30% from 36 billion cubic meters to 47bcm during
the 20-year contract term, Armenian Energy Minister Armen Movsisian
told journalists.

He said that initially the Iran-Armenia gas pipeline would pump 1.1
billion cubic meters of gas per year, which will increase to 2.3 bcm
at the end of the contract.

He also said that the contract might be extended by five years – from
20 to 25 years.

Iranian Ambassador to Armenia Mohammad Farhad Koleini was quoted as
saying earlier that trade between Iran and Armenia arising from the
agreement to build and operate the pipeline will amount to $10
billion over the next 20-25 years.

Armenia and Iran signed an agreement on May 13 for the construction
of a pipeline between the two countries. The pipeline is 141 km long,
inducing 41 km in Armenia and 100 km in Iran. The total cost of the
project is estimated at $210-$220 million.

Gas should start to arrive in Armenia from January 2007 and will be
used at Armenian thermal power plants to produce electricity for
export to Iran.