Natural Gas from Iran to Enter Armenia from March 19

Arminfo
2007-03-16 11:44:00

Natural gas from Iran by Iran-Armenia gas line will enter Armenia
started March 19, Director General of "High-Voltage Power transmission
Lines" state CJSC Sahak Abramyan told ArmInfo. The Company is a
Customer of the gas line construction.

According to S. Abramyan, the first 40-km section of the gas line from
Meghri to Kajaran has already been built. A solemn ceremony will be
held in view of the Iranian gas entry the Republic. The two countries’
Presidents and the Government members will take part in the ceremony ,
the Director General said. Armenia will be able to receive to 450 mln
cub m of gas a year by this gas line section till 2008. Further, the
volumes of the Iranian gas supplies may grow to 2,3 bln cub m a year
with the increase of the gas line’s throughput capacity from Kajaran
to Ararat.

As the RA Energy Minister Armen Movsisian told ArmInfo earlier, during
the solemn ceremony of opening the gas line, Armenia and Iran intended
to sign an interstate agreement on construction of a boundary PTL on
Araks river, as well to discuss another energy projects.

To note, the total length of Iran-Armenia gas line makes up 141
km. For construction of the first section, the Iranian side has given
a credit of $28,2 mln with an interest rate of Libor+2 and with the
repayment term within 5 years since the gas line commissioning.
Armenia will pay off for gas by electric energy supplies on the basis
of 3 kWh per 1 cub m of natural gas. It is assumed that the right for
the gas line operation will be given to "ArmRosgazprom"
Armenian-Russian CJSC that presently carries out the works to increase
the throughput capacity of this gas line.