Armenia and Iran develop energy cooperation

RIA Novosti, Russia
Dec 2 2004

ARMENIA AND IRAN DEVELOP ENERGY COOPERATION

YEREVAN, December 2 (RIA Novosti) – Armenia is interested in
strengthening its relations with Iran, Armenian President Robert
Kocharyan said at a meeting with an Iranian delegation led by Iranian
Energy Minister Habibollah Bitaraf.

The Armenian president’s press service said the construction of a gas
pipeline and high voltage power lines marked the beginning of
Armenian-Iranian business relations, which entail discussions about
other potential programs. “We are ready to do everything possible to
support the current level of cooperation,” Mr. Kocharyan said.

Mr. Bitaraf said the construction of the Iranian section of the gas
pipeline would begin in the next two months and that Iran would
increase the amount of electricity supplied to Armenia to 1,000 MW
after the construction of a third high-voltage power line.

Iran is also interested in cooperating with Armenia on hydroelectric
plants and alternative energy sources such as wind power plants and
the commissioning of the fifth generator at the Razdan thermal plant.

The construction of the Kadzharan tunnel, Iranian fuel exports to
Armenia and the potential for Armenia to use Iranian equipment in
power plant construction were also discussed.

The Iranian delegation is visiting Armenia for the start of
construction of the Armenia section of the Iran-Armenia gas pipeline,
the commissioning of the Agarak-Shinuair high voltage power line and
the signing of an agreement on another power line.

On May 13, Iran and Armenia signed an agreement on the Iran-Armenia
pipeline in Yerevan. According to the agreement, the pipeline will be
completed by January 1, 2007 and 36 billion cubic meters of gas will
be imported to Armenia over the next 20 years. Armenia will import
1.1 billion cubic meters of gas a year in exchange for supplying Iran
with electricity. The pipeline will also carry Turkmen gas through
Iran to Armenia.

Construction of the Armenian section of the pipeline began on
November 30, the same day the Agarak-Shinuair power line was
commissioned.