ArmenPress
March 3 2005

HAYRUSGAZARD WINS TENDER FOR CONSTRUCTION OF IRAN-ARMENIA GAS
PIPELINE

YEREVAN, MARCH 3, ARMENPRESS: Armenian energy minister Armen
Movsisian announced today that a joint Russian-Armenian Hayrusgazard
company was recognized the winner of a tender announced late last
year for construction of the Armenian section of Iran-Armenian gas
pipeline. The project’s subcontractor is Iranian company Sanir, which
will supply pipes and other equipment.
Movsisian said he was lately in Iran and saw that all preparatory
work was completed. He said field work and digging pipeline trenches
will kick off in late March. Pipes are expected to arrive in Armenia
in June to be followed by assembling work.
In response to a question whether Armenia has enough political
resource to push ahead the idea of transiting Iranian natural gas to
Georgia and Ukraine in defiance of Russia’s Gazprom that may increase
drastically the price of Russian gas supplied to Armenia, Movsisian
said the technical parameters of the would-be pipeline do not allow
it, but added if such a question arises a parallel pipeline may be
built.
“Today, thanks to the policy of Armenian president we are able to
maintain privileged prices of Russian gas, which ships it to Armenia
at a price that does not differ from Russian domestic price,” he
said, adding that Armenia is a sovereign country and “if it finds
that transit of Iranian gas to Georgia, Ukraine and further to Europe
would be economically more profitable, it will find political
resource to push it ahead.”
Movsisian denied allegations that Armenia is facing external
pressure in connection with the Iran-Armenian pipeline. He refused to
comment on its possible fate in case of escalation of Iran-USA
standoff.
The agreement was signed in Yerevan last May. Under it the
pipeline should be operative by 2007, January 1. Over next 20 years
Iran will deliver to Armenia 36 billion cubic meters of natural gas,
the bulk of which will be used for electricity production, which will
be shipped to Iran as payment. In the first stage of the project 100
km-long pipeline will be built in Iran and then the 41 km-long
section in Armenia.
The total cost of the project is between $200-$250 million.
Hayrusgazard is the sole supplier of Russian gas to Armenia. Armenian
government and Russian Gazprom hold each 45 percent of its shares,
and ten percent is owned by Russian Itera.

From: Emil Lazarian | Ararat NewsPress