IRAN-ARMENIA PIPELINE CONSTRUCTION STARTS

United Press International
March 25 2009

TEHRAN, March 25 (UPI) — Armenia began construction on a 186-mile
pipeline to bring oil products from the Tabriz refinery in northern
Iran in exchange for electricity.

"The pipeline would be a safe route for importing oil products to
Armenia that will increase security of energy supply and decrease the
cost of fuel import," Armenian Energy Minister Armen Movsisyan said.

The project would bring 81 billion cubic feet of natural gas from
refineries in Tabriz each year, which is about the same amount Armenia
imports from Russia currently through Georgia.

Armenia will exchange 3 kilowatts of electricity with Iran for each
cubic meter (35.3 cubic feet) of oil products, Iran’s Press TV reports.

Both sides signed a series of agreements in the energy sector
and tourist industry in December. A March 2007 deal outlined the
provisions for an 87-mile natural gas pipeline meant to relieve
Armenia’s dependency on Russian resources.

Europe and the surrounding region have moved to diversify the energy
transit sector following a gas dispute between Ukraine and Russia
that left European customers without gas for weeks in January.