The governments of Iran and Armenia have agreed in principle on the long-delayed construction of a 140-kilometer gas pipeline that will transit Iranian gas to Armenia. The $120-$150 million pipeline, delivering 1.5 million cubic meters of gas per day, is expected to become operational by the end of 2002.
Several international companies, including Russia's gas giant Gazprom and France's Gaz de France, have been mentioned as potential partners in the private consortium that will construct and operate the link for the project, although no concrete deal has yet been signed, AFP reported.
Unofficial reports suggested that the European Union (EU) will contribute €30 million for technical assistance to the construction of the pipeline, which could be extended in the future to Europe. In the long-run, Armenia hopes to become a transit point the for exportation of gas to Europe.
An initial accord on an Iranian-Armenian pipeline was signed in 1992, modified in 1995, but never implemented because of financial problems. Currently, Armenia‘s sole gas provider is the [Russian] Itera company. Iran is the second largest producer in the Organization of Petroleum Exporting Countries (OPEC). Oil exports make up 80 percent of Iran's foreign currency revenues. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
