Iran eyes tripling gas-to-power barter with Armenia

Oil&Gas Materials 1 July 2016 16:09 (UTC +04:00)

Baku, Azerbaijan, July 1

By Emil Ilgar – Trend:

Iran and Armenia reached a preliminary agreement to triple the amount of the gas-to-power barter, said Alireza Kameli, managing director of the National Iranian Gas Exports Company (NIGEC), Mehr reported July 1.

He said that currently Iran exports one million cubic meters of gas per day to Armenia and receives 300 megawatts of power.

The sides are preparing infrastructures to triple the amount of gas-to-power barter and the agreement is expected to be finalized soon.

Earlier, Mohammad Sadeq Qazizadeh, head of the Power Research Institute, said that Tehran and Yerevan are holding negotiations over the export of electricity and related commodities and services, Press TV reported.

Iran and Armenia signed a deal in 2004, based on which, Iran exports natural gas to its northwestern neighbor to generate electricity and in return, Armenia exports electricity to Iran.

Last August, Iran and Armenia signed a contract for construction of the third power transmission line that would enable the two countries to exchange more electricity.

The new power transmission line, due to be completed in 18 months, is expected to increase the volume of electricity export from Armenia to Iran by 700 megawatts, to reach a total of 1,000 megawatts.

Iranian officials said last October that Armenia had already started work on a 400-kilovolt power transmission line in addition to a combined-cycle power plant, and that Yerevan had asked Tehran to supply the natural gas it needs to get the plant going.