IRAN-ARMENIA GAS PIPELINE TO BOOST CAPACITY TO 2.5 BLN CUBIC METERS AS OF NOV

Interfax
Sept 10 2008
Russia

The Iran-Armenia gas pipeline’s capacity will increase to 2.5 billion
cubic meters a year as of November 2008, Armenia’s Energy and Natural
Resources Minister Armen Movsisyan told journalists on Wednesday.

He said that this was possible owing to an increase in the capacity
at the Kadzharan-Yerevan section of the pipeline. Movsisyan added
that the main construction work on this section had already been
completed and testing would soon commenced there.

Movsisyan also said that if necessary Armenia could use Iranian
gas until the start of regular supplies [according to an agreement
between the two countries, supplies should start at the beginning of
2009]. This would happen if Russian gas supply to Armenia is either
limited or suspended for any reason.

He added that the Iran-Armenia gas pipeline is an alternative route to
the northern trunk pipeline, through which Armenia currently receives
gas from Russia via Georgian territory.

In accordance with the agreement, as of 2009, Iran will supply Armenia
with 1.1 billion cubic meters of gas a year. This supply will increase
to 2.3 billion cubic meters as of 2019. Armenia will pay for this
gas with electricity at 3-kilowatt hours per cubic meter. Surplus
gas could be used to meet Armenian needs.

CJSC ArmRosgazprom is the general contractor for the construction of
the Iran-Armenia gas pipeline.

From: Emil Lazarian | Ararat NewsPress