THE CONSTRUCTION of the gas pipeline from neighbouring Iran has the potential of considerably reducing Armenia’s heavy dependence on Russian energy resources, and has significantly boosted its electricity exports. It remains unclear, however, when Iranian gas could start flowing into the country. The pipeline’s second and final Armenian section was inaugurated in the presence of Armenian President Serzh Sarkisian and Alexei Miller, chairman of Gazprom. The two men, joined by other Armenian, Russian, and Iranian dignitaries, watched as workers welded together its last pipes.
Mr Miller's presence at the high-profile ceremony underscored the fact that the pipeline will be controlled by the ArmRosGazprom (ARG) national gas distribution company in which Gazprom holds a controlling stake. ARG has financed and carried out work on the 197-km stretch running through the country's mountainous Syunik region. Speaking to journalists at the ceremony, Energy Minister Armen Movsisian said the pipeline will undergo technical testing and be ready to transport Iranian gas "within weeks". But he again avoided setting any dates for the start of Iranian gas supplies.
The new pipeline's capacity of approximately 2.3bn cum/yr of gas essentially matches the annual volume of Armenian gas imports from Russia that are transported through Georgia. With Russian supplies meeting Armenia's needs, the bulk of Iranian gas is expected to be converted into electricity that will then be exported to the Islamic Republic. As Mr Movsisian pointed out, the pipeline will be vital for Armenia's energy security in case of force majeure situations. The minister clearly referred to a possible disruption or termination of Russian gas deliveries to Georgia that would almost certainly affect Armenia as well.
The prospect of a severing of Russian supplies has become even more real since the August war between Georgia and Russia. A senior Georgian official predicted last month that the Russians will at least cut back on those supplies this winter.