Interfax
July 21 2004

Iran starts to build pipeline to Armenia

Yerevan. (Interfax) – Iran has started to build its 100- km section
of the Iran-Armenia gas pipeline, Armenian Ambassador Plenipotentiary
to Iran Gegam Garibjanian told journalists in Yerevan.

He said that an Iranian company is building the pipeline using state
funds.

He said that the 40-km Armenian section of the pipeline would also be
built by an Iranian company, whose representatives arrived in Armenia
over the past few days. The ambassador did not name the company, but
said that it has state support and will be able to complete the
project ahead of schedule.

ZAO Armrosgazprom announced earlier that its plans to participate in
the construction and operation of the Iran-Armenia pipeline.

ZAO Armrosgazprom was set up in 1997 with a charter capital of $280
million. The company includes the entire gas transport and
distribution system in Armenia. The company’s shareholders are
Gazprom and the Armenian Energy Ministry – 45% each, and Itera – 10%.

According to the feasibility study for the project, developed by
Gazprom, the project will cost $140 million.

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.