The Messenger, Georgia
Dec 28 2007

Yerevan: Gazprom ready to finance completion of Iran-Armenia natural
gas pipeline

By M. Alkhazashvili
(Translated by Diana Dundua)
Friday, December 28

Russia’s Gazprom is moving forward with the construction of an
Iran-Armenia natural gas pipeline, the news agency Regnum reports.

Armenian Energy Minister Armen Movsisyan said Gazprom will be
investing in the project via ArmrosGazprom, the joint
Russian-Armenian company responsible for Armenia’s natural gas
industry.

The construction of the gas pipeline, expected to finish in 2008, may
result in Gazprom increasing its majority stake in the company, he
stated.

`The final amount of the Gazprom share in ArmrosGazprom will be known
after all the investment works are ended,’ Movsisyan said.

The Iran-Armenia gas pipeline is slated to have an annual capacity of
1.2 billion cubic meters when it comes into operation, with the
project taking a three-year investment of USD 148 million.

By 2019, Armenian officials say, they will be able to import 2.3
billion cubic meters annually.

As part of the 20-year contract, Regnum writes, Armenia will exchange
three kilowatts of electricity for every cubic meter of Iranian
natural gas.