PIPELINE FROM IRAN TO ARMENIA POLITICALLY AND ECONOMICALLY UNPROFITABLE: AZERBAIJANI OIL AND GAS EXPERT

Today.Az
/51177.html
March 29 2009
Azerbaijan

Baku considers that the idea of laying pipeline from Iran to Armenia
is both politically and economically unfavorable.

According to oil and gas expert Ilham Shaban, this is the same as to
propose laying an express railroad from Iran to Russia via Armenia.

Notably, in early March Armenian energy minister Armen Movsesyan
announced that in 2009 Armenia and Iran will start construction of the
Tebriz-Yeraskh pipeline. He said ready oil products, in particular,
gasoline and diesel fuel, will be supplied from the oil refinery of
Tebriz to Armenia.

"I do not understand whether they, Armenians, do not look at the map
or they are just poorly informed about political realities? Where
will this pipeline go", says Shaban.

According to him, 4-5 years ago there was proposed an idea to build an
oil refinery of a capacity of 1 mln tons of production in Megri. "They
said it will refine Iranian crude, while Iran will invest into the
construction of an oil refinery, while Armenia will further compensate
for these costs by ready oil products. But then it turned out that
a simple transportation of oil products by cars makes the idea of
building a plant unnecessary".

Thus, considers the expert, such projects are purely declarative,
as there is minimum economic profit there. "All these projects,
related to Iran, should be considered in separate. They are often
declared from political point of view, without taking into account
the economic substantiations, as there are sanctions and embargo
against this country", says the expert.