Armenian energy minister: Armenia may use Iranian gas instead of
Russian if latter turns out to be more expensive

2008-06-06 17:36:00

ArmInfo. By the end of 2009, Gazprom OJSC will invest 62,4 bln AMD
(over $200 mln) in construction of the second branch line of
Iran-Armenia gas pipeline, Armenian Minister of Energy and Natural
Resources Armen Movsissyan said at a press-conference, Friday.

He said that according to the schedule, the construction works are to
be completed at the beginning of 2009, however, the current
construction rates show that the pipeline may be built by the end of
2008, the minister said. He noted that after completion of the
construction works, Armenia will have an alternative gas pipeline to
the present northern one from Russia. Replying to ArmInfo
correspondent’s question, the minister said that the gas which will
come to Armenia from Iran may be used not only in exchange for Armenian
electric power to Iran, but also for Armenia’s needs. Movsissyan even
pointed out that Armenia has a right to choose between the Russian and
Iranian gas and the gas price. If the Iranian gas turns out to be
cheaper than the Russian one, Armenia will purchase Iranian gas, he
said. Movsissyan added that the new price of Russian gas for Armenia
will be specified within 2-3 months. At the moment, Gazprom sells gas
to Armenia for $110 per 1 thsd cub.m., however, the price will be
changed staring from January 1, 2009.

To note, in accordance with an agreement, starting from 2009 Iran will
supply 1,1 bln cub.m. of gas to Armenia, and from 2019 – up to 2,3 bln
cub.m. of gas per year. Armenia will pay for the gas at the rate of 3
KW/h against 1 cub.m.