Georgia, Iran Still Hope to Supply Gas to Europe Via Armenia

GEORGIA AND IRAN STILL HOPE FOR SUPPLYING GAS TO EUROPE VIA TERRITORY
OF ARMENIA

YEREVAN, JANUARY 21. ARMINFO. Georgian Energy Minister Niko Gilauri
will visit Iran by the end of January, 2005, Iran news reports.

In the course of the visit, the parties will discuss imports of
natural gas and electricity from Georgia to Iran. Niko Gilauri told
journalists that the negotiations on the given issues were continued
and gave a positive assessment of the given process in the bilateral
economic relations. He said that at the meeting with Iranian
authorities, the issues of supply of natural gas of Iran via Georgia
to Europe would be discussed, as well as the prospect of activity of
the joint commission of economic cooperation of Tehran and Yerevan. At
the same time, he said that Georgia needed restoration internal gas
transmission lines and Iran expressed readiness to render financial
assistance to Georgia for this purpose.

It should be noted that construction of the Armenian section of
Iran-Armenia gas pipeline started in late November of 2004. In
conformity with the agreement, within 20 years Iran will supply 36 bln
cubic meters of natural gas to Armenia in exchange for
electricity. Construction of the gas pipeline will be completed by Jan
1, 2007, then the gas systems of Armenia and Iran will be united.

The agreement on supply of Iranian natural gas to Armenia and on
construction of the gas pipeline was signed on May 13, 2004. In
conformity with it, Iran is to supply 1.1 bln cubic meters of natural
gas annually, and by 2.3 bln cubic meter annually starting from
2019. The diameter of the pipe is 700 mm. At pre sent, Armenia and
Iran mutually transmit electricity through two power transmission
lines (200 megawatt each). The third 400 megawatt power transmission
line is currently constructed.

According to the former Ambassador of Iran to Armenia Mohammed Farhad
Koleini, within 20-25 years the commodity turnover of Armenia and Iran
will reach 10 bln USD under the agreement on construction of the gas
pipeline from Iran to Armenia. The top leadership of Armenia rejects
the possibility of supply of the Iranian gas to Europe via Armenia.