Paper debates pros and cons of selling Armenian-Iran gas pipeline to Russia

Ayots Ashkar, Yerevan
8 Jul 06

Excerpt from K.Beglaryan’s report by Armenian newspaper Ayots Ashkar
on 8 July headlined "What will be the destiny of the gas pipeline?"

The construction of a gas pipeline between Iran and Armenia is expected
to be finished by the end of the year. And the exploitation of it
will begin from next year, at best. We have recently noticed a flurry
of activity around this issue. It began after the deputy chairman of
Russia’s gas giant, Gazprom, Aleksandr Ryazanov, announced plans to
acquire the Iran-Armenia pipeline. This is not new. But the Armenian
party officially denies this. It is only natural that Gazprom wants
to buy the gas pipeline as it provides Armenia with gas and is a
co-owner of the local Armenian gas distribution network. Moreover, the
Iran-Armenia gas pipeline is of an important strategic significance. By
this, Armenia would first of all settle the problem of an alternative
gas supply route.

It is very important to our state given that the situation in the
region is unstable. On the other hand the gas pipeline has serious
prospects. In this context it seems illogical to hand over the
Iran-Armenia gas pipeline to a third party taking into account the
fact that Armenia managed to get an agreement for its construction
with difficulty.

[Passage omitted: reported details on expected volume]

Russia’s interest in this gas pipeline is only natural as it is
anxious not to lose the Armenian market. Armenia is expected to barter
electricity for Iranian gas. That is to say, in this way Armenia
would settle part of its problem with the exploitation of the Armenian
energy system, the production of extra electricity and its sale. This
would give a serious boost to the energy sphere. Finally, it is not
so important whether the gas pipeline will be controlled by the state
or will be sold. In fact, not much will change because of that. The
Iran-Armenia gas pipeline should be used as effectively as possible.

Naturally, there is no sense in selling the Armenian section of that
[pipeline] to a third party.

[Passage omitted: reiterates the point]

This does not at all mean that the sale of the gas pipeline should
be completely ruled out. Armenia might have to think about its sale
if that would open up serious prospects for the country, i.e., the
gas pipeline would be turned from a local into a regional one. The
Iran-Armenia gas pipeline has such potential and it should not be lost.

From: Emil Lazarian | Ararat NewsPress