IranMania, Iran
Nov 30 2004

Armenia-Iran to build gas pipeline, share energy

LONDON, Nov 30 (IranMania) – According to Armenia’s Energy Ministry,
Armenia and neighbouring Iran are due Tuesday to launch construction
of a gas pipeline between their two countries, and also start using a
high-voltage energy line that would double exchanges of electrical
power.

The construction of the pipeline’s Armenian part would be funded by a
30-mln-dollar (25-mln-euro) loan from Iran to Armenia, the Ministry’s
spokeswoman Lusine Arutyunyan told AFP, adding that the 82-kilometer
energy line was also financed by Iran.

Armenia intended to repay the 8.4-mln-dollar loan for the power line
in supplies of electricity to Iran, she said.

The construction contract for the gas pipeline has been awarded to
Iranian company Sanir.

Iran and Armenia signed a contract in May under which Iran will
supply Armenia, a landlocked former Soviet republic which borders
Iran to the north, with a total of 36 billion cubic metres of gas
over a 20-year period, expected to start in early 2007.