TRANSIT OF IRANIAN GAS THROUGH ARMENIA REMAINS ISSUE ON AGENDA

Arka News Agency, Armenia
Nov 2 2006

YEREVAN, November 2. /ARKA/. The transit of Iranian gas through Armenia
remains an issue on agenda, Director General of the "ArmRosgasprom"
CJSC Karen Karapetyan told a press conference.

"In theory, Armenia can become a transit country. This is also possible
if the seller and the purchaser agree on terms and the advisability
of the transportation way running through Armenia is substantiated,"
he said.

Karapetyan explained that if the Iran-Armenia gas main had been
designed as a transit gas main its capacity would be four times as
high and the design cost three times as high. However, the financing
burden would be laid on consumers.

"In this aspect, Armenia is a unique country, because it assumed
the burden to ensure the repayment of the funds. Armenia has made
an unprecedented, but right, step by constructing an alternative gas
main in cooperation with Iran," Karapetyan said.

In this context, Karapetyan stressed that Armenia’s domestic market
is extremely small, and no other small country in the world is known
to have constructed a gas main for its own needs.

He also reported that after the Iran-Armenia gas main has been put
into operation in December 2006 Armenia will receive 300 to 400mln
cubic meters of gas at the initial stage, with this amount to be
increased up to 2.3bln cubic meters.

Armenia currently exports natural gas only from Russia – 1.7-1.8bln
cubic meters annually.