Iran may increase gas supplies to Armenia
The amount of gas being supplied to Armenia under a bilateral agreement to build a pipeline between the two countries
may be increased by over 30 % from 36 bn cm to 47 bn cm during the 20-year contract term, Armenian Energy Minister
Armen Movsisian told.
He said that initially the Iran-Armenia gas pipeline would pump 1.1 bn cmpy of gas, which will increase to 2.3 bn cm at the end of the contract. He also said that the contract might be extended by five years -- from 20 to 25 years.
Iranian Ambassador to Armenia Mohammad Farhad Koleini was quoted as saying earlier that trade between Iran and
Armenia arising from the agreement to build and operate the pipeline will amount to $ 10 bn over the next 20-25
Armenia and Iran signed an agreement on May 13 for the construction of a pipeline between the two countries. The pipeline is 141 km long, inducing 41 km in Armenia and 100 km in Iran.
The total cost of the project is estimated at $ 210 mm-$ 220 mm.
Gas should start to arrive inArmenia from January 2007 and will be used at Armenian thermal power plants to produce electricity for export to Iran.