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Yerevan: Gazprom ready to finance completion of Iran–Armenia natural gas pipeline

By M. Alkhazashvili
(Translated by Diana Dundua)
Friday, December 28
Russia’s Gazprom is moving forward with the construction of an Iran–Armenia natural gas pipeline, the news agency Regnum reports.

Armenian Energy Minister Armen Movsisyan said Gazprom will be investing in the project via ArmrosGazprom, the joint Russian-Armenian company responsible for Armenia’s natural gas industry.

The construction of the gas pipeline, expected to finish in 2008, may result in Gazprom increasing its majority stake in the company, he stated.

“The final amount of the Gazprom share in ArmrosGazprom will be known after all the investment works are ended,” Movsisyan said.

The Iran–Armenia gas pipeline is slated to have an annual capacity of 1.2 billion cubic meters when it comes into operation, with the project taking a three-year investment of USD 148 million.

By 2019, Armenian officials say, they will be able to import 2.3 billion cubic meters annually.

As part of the 20-year contract, Regnum writes, Armenia will exchange three kilowatts of electricity for every cubic meter of Iranian natural gas.