http://www.iranmania.com/News/ArticleView/Default.asp?NewsCode=49335&NewsKind=Current%20Affairs

Iran, Armenia gas pipeline operational by spring

Wednesday, January 31, 2007 - ©2005 IranMania.com

Archived Picture - - A natural gas pipeline linking Iran and Armenia 
will become operational this coming spring, a spokesman for the Armenian 
president said. The construction of the 141-kilometer (90-mile) pipeline 
from Iran began in 2004. It has a price tag of about $210-220 mln, 
including $120 mln for the Armenian section, RIA Novosti reported.

LONDON, January 31 (IranMania) - A natural gas pipeline linking Iran and 
Armenia will become operational this coming spring, a spokesman for the 
Armenian president said.

The construction of the 141-kilometer (90-mile) pipeline from Iran began 
in 2004. It has a price tag of about $210-220 mln, including $120 mln 
for the Armenian section, RIA Novosti reported.

“The gas pipeline will be commissioned this spring. Only then will it be 
possible to say whether it will be a transit system. In any case, 
Yerevan has always been guided by considerations of economic expediency. 
Economic projects that had a political subtext have always been rejected 
by the Armenian authorities,“ Viktor Sogomonyan said.

Under the current agreement, Iran is to deliver 36 bln cubic meters of 
natural gas to Armenia over the next 20 years, subject to a possible 
five-year extension and an increase in deliveries to 47 bln cubic meters.

Armenia plans to use all of the gas to produce electricity for 
subsequent export to Iran, as well as for domestic consumption.

Sogomonyan also confirmed that Russian energy giant Gazprom was 
considering a project to build an oil refinery in southern Armenia near 
the Iranian border.

“I can confirm that Russia’s Gazprom is considering the possibility of 
building an oil refinery in Armenia,“ Sogomonyan said, adding that 
negotiations were in the initial stage.

He said Armenian President Robert Kocharyan had discussed the project 
during his visit to Russia last week. Russian President Vladimir Putin 
said after the talks that Russian mobile operator VimpelCom, aluminum 
company RusAl and Gazprom would double their investment in the Armenian 
economy to $1.5 bln.

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