Gas alternative guarantees independence
By Mher Ohanian

Yerkir/arm
3 Dec 04

Start of construction of Iran-Armenia gas pipe is now a reality. The
negotiations that started back in 1992 are now in the history and
the 141 km long pipe will now raise the energetic independence of
our country.

The Iran-Armenia gas pipe will be an alternative source in situations,
when our country runs into blind alleys, which was the case in
1992-94. Note that gas provides energy to 35-40 per cent of Armenian
production. Naturally, explosions of the only gas pipe lines cause
emergencies, which will be avoided due to the new pipe.

In addition, the new pipe will spur competition with the Russian gas
pipe which will get a grip on the prices. Another way for cheap gas
can be the Turkmenistan gas coming through this new pipe. By 2007
Armenia will import from Iran a quantity of gas equal to what it now
imports from Russia. And the quantity is supposed to double it by 2019.

The expenditures will be 220 million dollars, out of which Armenia
will need to pay 30 million (via a credit from Iranian bank).
Later on, it will be necessary to construct a pipe through
Kajaran-Sisian-Jermuk-Ararat-Yerevan will cost 90 million
dollars. Possible sponsors are now being negotiated.

Another planned project is construction of a hydro power station on
Araks river, which will also be probably sponsored through Iranian
bank loans.

In addition, it is likely that not only factories will be consuming
the gas from Iran but also the regular population, 70 per cent of
which is now deprived of such facilities.