By OGJ editors
HOUSTON, July 23 -- ZAO Armrosgazprom has begun construction on the 100 km Iranian section of the $210-220 million Iran-Armenia natural gas pipeline that will promote gas deliveries from Turkmenistan through Iran to Armenia (OGJ, Feb. 3, 2003, p. 62). Iran is funding its section, which is being built by an Iranian contractor, Russia's Interfax news agency reported Thursday.
Armrosgazprom, a consortium of Russia's OAO Gazprom, 45%, Armenia's Energy Ministry 45%, and Russia's Itera 10%, will operate the Iran-Armenia pipeline.
Gazprom has completed a feasibility study for the Armenian section, which will extend 41 km from the Iranian border to Kajaran, about 320 km from Yerevan in southeastern Armenia. The $140 million Armenian section also will include rehabilitation and partial replacement of parts of the existing Kajaran-Yerevan gas pipeline. Armenia is seeking funding for its project, and investor proposals have not yet been announced.
Under terms of an agreement the two nations signed in May, the 700 mm diameter pipeline initially will deliver 1.1 billion cu m/year of natural gas to Armenia for 20 years, increasing to 2.3 billion cu m at the end of the contract, which could be extended by 5 years. The gas, slated for first delivery in January 2007, will be used to fuel Armenian power plants that will export electric power to Iran and Georgia.
