Gazprom claims of possible retention of gas price for Armenia in exchange for participation in Iran-Armenia gas pipeline project

Armenia Materials 27 December 2006 18:19 (UTC +04:00)

(ArmInfo) -. The Iran-Armenia gas pipeline is included in the list of assets, during transfer of shares of which the Gazprom is ready to retain the gas price for Armenia at the level of $110 per 1 thsd cub m till 2009, the deputy Chairman of Gazprom's Governing Board, Alexander Medvedev, said at the press-conference in Moscow.

To remind, the Gazprom had spread a pres-release on April 6, 2006, about a strategic agreement, signed with RA Government, for 25 years. On of the clause of the Agreement included the RA Government's commitment to sell the 40- km section of Iran-Armenia gas pipeline, besides the fifth power unit of Hrazdan HPP, to "ArmRosgazprom" CJSC. However, further the Gazprom removed all the mentions about the pipeline from the official information. Moreover, the RA Prime Minister, Andranik Margaryan, has also denied the information about the transfer of the gas pipeline's section to Russia, while the RA Energy Minister, Armen Movsissyan, said the Iran-Armenia gas pipeline will remain the RA Government's property, reports Trend.

However, the Gazprom had informed at the end of April, 2006, that the Holding jointly with the RA Government, resolved to create a working group to implement the bilateral Agreement. The deputy Chairman of Gazprom's Governing Board, Alexander Ryazanov, has confirmed the Holding's intention to acquire the Iran-Armenia gas pipeline's section.

The project of Iran-Armenia gas pipelines' construction (extension of 141 km, the pipe diameter of 700 mm ) in the Armenian territory is estimated of $120 mln . The financing is carried out by Iran, in exchange for which Armenia will supply electric energy to Iran. The construction of the first Armenian section of Meghri-Kajaran gas pipeline had v\been started on November 30, 2004. The second section of Kajaran-Sisian-Jermuk-Ararat pipeline will be built by the Iranian "Sanir" Company. It is envisaged to put the gas pipeline into operation in 2007.