Prime-Tass English-language Business Newswire
July 20, 2004

Gazprom official says Iran-Armenia pipeline to cost $140 mln

YEREVAN, July 20 (Prime-Tass) — The construction of the natural gas
pipeline from Iran to Armenia will cost U.S. USD 140 million,
Gazprom’s Deputy Chairman Alexander Ryazanov told a briefing Tuesday,
after meeting Armenian President Robert Kocharyan.

Gazprom has completed its inspection of the existing part of the
pipeline that runs through Georgia, which may break even in nine
years, Ryazanov said.

“If the parties to this project can attract the funding, then there
should be no problem with the construction of this pipeline,”
Ryazanov added.

But he said that the funding may take the form of government loans or
Gazprom’s own funds.

“The pipeline that runs through Georgia is in a poor technical state
and is badly in need of major repairs”, Ryazanov said.

He ruled out natural gas transit across Armenia, saying that “Armenia
is not a transit country, but a gas consumer.”

Armenia and Iran signed a 20-year agreement on supplies of Iranian
natural gas to Armenia on May 13. Iran is expected to supply 36
billion cubic meters of natural gas to Armenia in exchange for
electric power in the period. It is not clear when the construction
of the pipeline will begin. End