CONSTRUCTION OF ARMENIAN SECTION OF IRAN-ARMENIA GAS PIPELINE WILL BE STARTED
ON 30 NOVEMBER, 2004

YEREVAN, NOVEMBER 26. ARMINFO. Construction of the Armenian section
of Iran-Armenia gas pipeline will be started on 30 November, 2004,
Director General of ArmRosgazprom CJSC Karen Karapetyan told ARMINFO.

He said that the construction of the gas pipeline is of great strategic
importance from the point of view of energy safety of Armenia and
diversification of the sources of natural gas. Karapetyan said that the
CJSC Yerevan TPP will order the necessary volumes of gas pledging to
pay in terms of electricity. As regards ArmRosgazprom, he said that
the company will come out as an operator of gas supply. Karapetyan
added that CJSC AromRosgazprom will also participate in a tender for
subcontract works on the Armenian section.

It should be noted that the client of the Iran-Armenia gas pipeline
construction is CJSC High-voltage Power Transmission Lines with an
Iranian company “Sanir” being its contractor. To note, on September 8,
2004, a contract on financing of the project of construction of the
Meghri-Kajaran section was signed in Yerevan. Under the contract,
Iran will issue a $30 mln credit to Armenia for construction of the
Armenian section of the gas pipe-line Iran-Armenia under 5% annual
interest for 7.5 years. The agreement on supply of Iranian natural
gas to Armenia and on construction of the gas pipeline was signed on
May 13, 2004. The sides intend to construct the gas pipeline within 2
years and to put it into exploitation by Jan 1, 2007. In conformity
with the agreement, within 20 years Iran will supply 36 bln cubic
meters of natural gas to Armenia.