RIA Novosti, Russia
Nov 17 2004

CONSTRUCTION OF ARMENIAN SECTOR OF IRAN-ARMENIA GAS PIPELINE TO START
IN LATE NOVEMBER 2004

YEREVAN, November 17 (RIA Novosti’s Gamlet Matevosyan) – The
construction of the Armenian sector of the Iran-Armenia gas pipeline
will start in late November 2004, head of technical development and
foreign relations department of the Armenian Energy Ministry Levon
Vardanyan told journalists on Wednesday.

According to him, the construction of the 42-km sector of the gas
pipeline 700 mm in diameter will start with Megri-Kadzharan site. In
compliance with the existing agreements, the Iranian side will
finance the construction of this sector and the remaining sector
between Yerevan and Ararat will be completed later, Mr. Vardanyan
said.

Armenia and Iran signed an agreement on the construction of the
Iran-Armenia gas pipeline in Yerevan on May 13, 2004. According to
this agreement, 36 billion cubic meters of Iranian gas will be
supplied to Armenia over 20 years. Armenia will receive 1.1 billion
cubic meters of Iran’s natural gas annually and pay for these
supplies with its electric energy.

The construction of the 141-km long pipeline (41 km on Armenian
territory and 100 km in Iran) will be completed in the end o 2006.
According to preliminary calculations, Armenian and Iranian
investments in the project will total $90 and $120 million
correspondingly.

The gas pipeline will link Tehran and Yerevan via the Megri section
of the Armenian-Iranian border. Turkmenistan’s gas will be delivered
to Armenia via Iran on this pipeline.