Prime-Tass English-language Business Newswire
June 30, 2006 Friday 5:36 PM EET
Russia’s Gazprom to buy built section of Iran-Armenia pipe soon
MOSCOW
Russia’s natural gas monopoly Gazprom plans to buy the section of the
Iran-Armenia pipeline that has already been built in the near future
and take part in completing its construction, Gazprom’s Deputy CEO
Alexander Ryazanov told reporters Friday.
The section it plans to buy is estimated to cost U.S. $30 million,
while the entire pipeline is estimated to cost $130 million, Ryazanov
said.
The government of Armenia is currently financing the construction of
the pipeline, Ryazanov said. Gazprom may swap its gas with Iran,
which is expected to supply gas to Armenia via the pipeline, Ryazanov
said.
The throughput capacity of the Iran-Armenia pipeline is expected to
amount to 1.2 billion cubic meters of gas per year. By transporting
gas via the Iran-Armenia pipeline Gazprom will be able to eliminate
its current risks from transporting gas to Armenia via Georgia.
Armenia’s natural gas monopoly ArmRosgazprom, in which Gazprom holds
45%, plans to complete 22.5 kilometers of the first 47-kilometer
section of the Iran-Armenia pipeline before August, the company’s
General Director Karen Karapetyan told reporters on May 22.
The Armenian government also holds 45% in ArmRosgazprom, while
Russian independent gas producer Itera holds 10% in the company.
Last year Gazprom exported 1.7 billion cubic meters of gas to
Armenia.
Starting from 2006, Gazprom hiked its gas price for Armenia to $110
per 1,000 cubic meters from $56 per 1,000 cubic meters.
Gazprom used to subsidize gas exports to former Soviet countries but
has recently hiked gas prices for Ukraine, Moldova, Azerbaijan and
Georgia, and seeks to hike its prices for Russia’s long-time, still
subsidized, ally Belarus.