SteelGuru, India
Sept 14 2008

Iran and Armenia gas pipeline to boost capacity

According to Mr Armen Movsisyan minister of Armenia’s Energy & Natural
Resources, Iran-Armenia gas pipeline’s capacity will increase to 2.5
billion cubic meters a year as of November 2008.

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

He said that if necessary Armenia could use Iranian gas until the
start of regular supplies. 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 KWH 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.