GASPROM INTENDS TO ACQUIRE IRAN-ARMENIA GAS PIPELINE

ARKA News Agency, Armenia
July 3 2006

YEREVAN, July 3. /ARKA – RIA Novosti/. Gasprom intends to acquire
Iran-Armenia gas pipeline that is under construction now, the company
board Vice Chairman Alexander Ryazanov said Friday at shareholders’
annual assembly in Moscow.

In his words, the gas pipeline exploitation will make it possible
to enhance security of gas supply to Armenia. He says there are
problems with gas transit to Armenia from Georgia, since the latter
"takes gas without any authorization".

Ryazanov said that the gas pipeline would start functioning in 2007
and would convey 1.2bln cubic meters a year.

Construction of Armenian section of Iran-Armenia 141-km pipeline with
700-diameter pipes is estimated to cost $120 million. The construction
is to be carried out at the expenses of Iranian side. In return,
Armenia will provide electric power to Iran.