IRAN BEGINS DELIVERING GAS TO ARMENIA IN EXCHANGE FOR ELECTRICITY

Interfax
May 14 2009
Russia

Iran began delivering gas to Armenia on Thursday under a
gas-for-electricity deal signed in Yerevan on May 13, Armenian Energy
and Natural Resources Minister Armen Movsisyan told Interfax.

Four organizations are parties to the agreement: Yerevan Thermal
Electricity Station and Vorotansky Cascade Hydroelectric Station
(Armenia) and National Iranian Gas Company and Tavanir (Iran).

Only small amounts of gas are currently being delivered to the
Yerevan station, from which a portion will be passed on to other
thermal electricity stations.

The delivery volumes will be increased in stages. The volume announced
previously – 1.1 billion cubic meters (bcm) – is unlikely to be
reached in 2009, Movsisyan said.

Armenia will pay for the gas with electricity in the ratio 3 kWh per
1 cubic meter.

The gas is being delivered along the Iran-Armenia pipeline, which
represents an alternative to the North Caucasus-Transcaucasus pipeline
used to deliver Russian gas to Armenia via Georgia.

It was reported earlier that Iran agreed to deliver 1.1 bcm of gas a
year to Armenia beginning in 2009, and up to 2.3 bcm a year beginning
in 2019.

(Our editorial staff can be reached at eng.editors@interfax.ru)