CONSTRUCTION OF IRAN-ARMENIA OIL PRODUCTS PIPELINE WITH ANNUAL CAPACITY OF 1.5 MILLION TONS TO BE LAUNCHED IN 2010

ArmInfo
2009-11-19 14:36:00

ArmInfo. Construction of Tabriz (Iran) – Yerashkh (south of Armenia)
oil products pipeline with annual capacity of 1.5 million tons
is to be launched in 2010, Armen Movsisyan, Minister of Energy and
Natural Resources of Armenia told media on Thursday. He said internal
consumption of oil products in Armenia is less than 1.5 million tons,
but the project is designed considering the expected growth of internal
demand for the coming 10-15 years and export opportunities.

(Earlier the minister said that Armenia consumes 450-500,000 tons of
fuel yearly). Project design and preparations have been completed.

Armenia, Russia and Iran have announced their participation in the
project. Iran will be the key financier of the project. Gazprom may
invest 10%, he said. The minister highlighted that transportation
of oil products via the pipeline is up to 8 times cheaper than by
railway. In addition, Tbilisi-Yerevan railway is in poor state
and needs serious reconstruction, A. Movsisyan said. A storage
terminal for oil products is to be built in the town of Yerashkh
in future. Construction will take 2 years. The project will cost
nearly $250-$260 million inclusive of construction of the oil products
pipeline and terminal, the minister said. He mentioned that the 250mm
pipeline will extend 300km from Tabrzi to Yersakh.

From: Emil Lazarian | Ararat NewsPress