CONSTRUCTION OF KAJARAN-ARARAT NEW GAS PIPELINE TO ENABLE TO INCREASE CAPACITY OF GAS TRANSPORTATION

Noyan Tapan
May 31 2007

YEREVAN, MAY 31, NOYAN TAPAN. Chairman, Director General of
ArmRusgazprom CJSC Karen Karapetian accompanied by experts has recently
paid a regular working visit to the building site of Kajaran-Ararat
section of the new gas pipeleine in order to familiarize himself with
the work process.

Construction of the 40-km Meghri-Kajaran gas pipeline, as well as
of new 197.4-km Kajaran-Sisian-Angeghakot-Jermuk-Ararat gas pipeline
with the diameter of 720 mm will enable to increase the capacity of
Armenia’s gas transportation system and to ensure the transportation
of agreement-envisaged amounts of Iranian gas via Iran-Armenia gas
pipeline to thermal power plants.

According to the investment program of ArmRusgazprom CJSC, which
was approved by the RA Public Services Regulatory Commission, the
preliminary cost of the project makes 52 bln drams, with investments
for 2007 only amounting to 33 bln drams.

The customer of the gas pipeline’s construction is ArmRusgazprom
company.

The work is being done by the company’s Transgasstroy LLC and 5
contractor organizations, which have much experience and skills
in this field. More than 250 experts and about 50 units of modern
construction equipment are engaged in the work.

The work is proceeding in quite hard conditions from the geographical
point of view, in some places – at 2,600-3,000 meters above sea
level. In addition to unfavorable relief and climate conditions, the
absence of adequate roads poses a great difficulty for construction
work.

In high mountanous sections, the preparation of tench passes and
landings is often accompanied by explosions.

NT was informed from ARmRusgazprom that the working group and experts
discussed the difficulties related to construction of some sections,
particularly the technical issues of laying the pipeline over the
Shamb River, the possibilities of pipe transportation in impassable
places, etc.

Based on the results of the visit, instructions were given to develop
the schedule of work.