SECOND SECTION OF IRAN-ARMENIAN GAS MAIN TO BE COMPLETED THIS MONTH

ARKA
Oct 20, 2008

YEREVAN, October 20. /ARKA/. The construction of the second,
Kajaran-Ararat, section of the Iran-Armenia gas main is to be completed
late this month.

At his meeting with journalists in the village of Lernashey, Syunik
region, Project Manager Vladimir Margaryan reported that the work
was to be completed on October 15, but weather conditions proved
unfavorable.

According to him, the last, 3km-long, section will connect the gas
main with the "point of destination", the town of Ararat about 60km
of Yerevan.

Margaryan pointed out that the most difficult work was done at an
altitude of 3,000 meters above sea level.

Ararat’s milder climate will make the builders’ task easier.

The Iran-Armenia gas main will increase the capacity of Armenia’s
gas transmission system and ensure the supply of gas to Armenia’s
thermal power plants.

The first 40km-long section, Meghri-Kajaran, was put into operation
on March 19, 2007.

The construction is carried out by ArmRosgasprom, which holds a
monopoly of supply and distribution of Russian gas in Armenia.

The project is estimated at $220-$250mln.

By the end of this autumn, Armenia will receive the first 400mln cubic
meters of natural gas from Iran, with this amount to be brought up
to 2.3bln cubic meters.

Under the contract, Iran is to supply a total of 6b ln cubic meters
of gas to Armenia during 20 years. The contract provides for a 5-year
prolongation and an increase in gas supplies up to 47bln cubic meters.

All the gas is to be use for generation of electric power for domestic
consumption and export to Iran – 3kwh of energy against one cubic
meter of gas.