Interfax, Russia
Oct 16 2009

Armenia plans to start building its section of oil pipeline from Iran
in 2009

YEREVAN Oct 16

Armenia plans to start building its section of an oil product pipeline
to run from Iran’s Tabriz to Yeraskh in southern Armenia before the
end of 2009, Armenian Energy and Natural Resources Minister Armen
Movsisian said at a press conference on Friday.

Russia will take part in the project, he said.

At the first stage of the project, oil products from Iran would be
shipped to Yeraskh and then distributed around Armenia, Movsisian
said.

The shipments of oil products from Iran through the pipeline are
expected to considerably reduce fuel prices in Armenia.

It was reported earlier that Iran would finance the project, which was
estimated at $240 million-$250 million.

The pipeline will be used for shipping petrol and diesel fuel from an
oil refinery in Tabriz to Armenia. A fuel storage terminal should be
built in Yeraskh as well.

Armenia’s annual demand for fuel is 450,000-500,000 tonnes.