IRAN EYES OIL PIPELINE TO ARMENIA

United Press International UPI
Feb 24 2010

TEHRAN, Feb. 24 (UPI) — Iran aims to increase oil exports to northern
neighbor Armenia through a 217-mile pipeline, the Iranian deputy oil
minister said Wednesday.

Armenia would receive 70,000 barrels of oil through the proposed
Shahnazi-Zadeh pipeline, reports state-funded broadcaster Press TV.

The estimated cost for the project is $350 million.

"The construction of the pipeline and oil terminal would increase
the exports of oil products to this northern neighboring country,"
said Deputy Oil Minister Noureddin Shahnazi-Zadeh.

No time frame was mentioned for the Armenian oil pipeline.

Iran sits on some of the largest oil and gas deposits in the world,
though refining capacity and economic sanctions prevents the country
from full exploitation of its resources.

The country relies partially on imports, meanwhile, as the mountainous
terrain in its northern provinces prevents transits from energy-rich
regions in the south of the country.

Existing infrastructure would allow Iran to import more than 17
billion cubic feet of gas from Azerbaijan each year.

Baku, however, expressed concern recently that U.S. sanctions targeting
the Iranian energy sector could undermine its trade relationship
with Tehran.