September 08, 2008

Iran agrees for Iran to Armenia pipeline extension to Europe

Ria Novosti quoted Mr Mahmoud Ahmadinejad president of Iran as describing plans to extend the Iran Armenia gas pipeline to Europe as very promising. He said that "The possibility of extending the Iran to Armenia gas pipeline to Europe is a very good scenario for us and we will welcome the project."

Mr Ahmadinejad said that thorough feasibility studies should be made to extend the project, originally designed to meet Armenian domestic needs with Iranian natural gas. He said that the gas pipeline is currently being tested.

The Armenian energy official has forecast that the Iran Armenia gas pipeline will be commissioned by early 2009. The first 40 kilometer leg of the pipeline went on stream in March 2007 and the second 141 kilometer leg is currently being built. The pipeline's cost has been estimated at between USD 220 million and USD 250 million. During the first stage, Armenia will pump some 400 million cubic meters of gas annually with plans to increase the volume to 2.3 billion cubic meters.