Interfax
July 21 2004
Building costs for Armenian gas pipeline section $140 mln
Yerevan. (Interfax) – Russian gas giant Gazprom has completed
feasibility study preparations for the Armenian section of the
Iran-Armenia gas pipeline, which indicate a work cost of roughly $140
million, senior Gazprom executive Alexander Ryazanov said in an
interview with an Armenian media company.
Gazprom is one of the main stockholders in Armrosgazprom, which
intends to be involved in the building and operation of this
pipeline.
The construction work includes laying a 41-kilomenter section of
pipeline from the Iranian border to the two of Kajaran (320 km from
Yerevan in southeastern Armenia), as well as overhauling and replace
parts of the Kajaran-Yerevan gas pipeline.
The project recoupment period is an estimated nine years, Ryazanov
noted.
“Financial sources for the project need to be found now, after which
there will be no other problems for construction,” he said.
Possibilities are inter-governmental loans and “the involvement of
Russia,” he said. The Armenian section of the pipeline might also be
built with “Gazprom funds,” he added.
This pipeline is of great strategic value to Armenia in terms of gas
supply and energy security, Ryazanov said. An inter-governmental gas
cooperation agreement is being readied for Armenia and Russia to
sign, he added.
