ITAR-TASS News Agency
TASS
December 13, 2004 Monday 5:29 AM Eastern Time

Gazprom to take part in Iran-Armenia pipeline construction tender

By Tigran Liloyan

YEREVAN

The Russian Gazprom company will take part in a tender for the
construction of a gas pipeline from Iran to Armenia, which the gas
giant expects to win, the executive director of the ArmRosgazprom
joint venture told Itar-Tass.

The executive director of the Russian-Armenian joint venture, Karen
Karapetyan, said the date of the tender will be announced shortly.
The Armenian government and Gazprom have 45 percent of ArmRosgazprom
shares each, while the remaining ten percent belong to the ITERA
company.

Karapetyan dismissed allegations that the gas pipeline from Iran to
Armenia is intended for the transit of Iranian gas to Europe. The
pipeline of a bigger diameter is needed for the transit, and that
would involve bigger investments, he said. Besides, a free sales
market in third countries is necessary for the transit of gas, and
there is no such market, he stressed.

Iran extends a credit of 30 million dollars for the construction of
the 40-kilometer-long Armenian section, the press service of the
Armenian government told Itar-Tass. An agreement on that was signed
when Iranian President Mohammad Khatami paid an official visit to
Yerevan last September.

The construction of the pipeline will be launched simultaneously on
both sides. A total of 100 kilometers of the pipeline will run across
Iran. The construction is expected to be finished in January 2007,
after which the gas systems of the two countries will be united.
Armenia expects to pay for the supplies of Iranian gas with
electricity.

The Armenian leadership is confident that the gas pipeline from Iran
will strengthen the republic’s energy security.