MOSNEWS, Russia
July 21 2004

Gazprom May Sponsor Iran-Armenia Pipeline Construction

Russian natural gas monopoly Gazprom may sponsor the construction of
a gas pipeline from Iran to Armenia, said Alexander Ryazanov, Deputy
Chairman of Gazprom’s Board, quoted by Itar-Tass news agency.

The project’s cost is estimated to equal to $140 million. According
to Gazprom’s calculations, the project will pay for itself in nine
years. The total length of the gas pipeline is 141 kilometers (88
miles), with 41 kilometers passing through Armenia’s territory and
100 kilometers being built on Iran’s territory. The annual volume of
gas deliveries to Armenia will be 36 billion cubic meters of gas. The
gas pipeline is being constructed solely to satisfy Armenia’s
domestic demand for natural gas.

Ryazanov conceded that the Russian monopoly may pay for the
construction of the pipeline, although the company is somewhat
`pressed for money’.