THE GAS pipeline linking Iran and Armenia will be put into operation shortly, a spokesman for the Armenian president said recently. The construction of the 141-km long, $210-220-million, pipeline from Iran began in 2004. “The gas pipeline will be commissioned this spring. Only then will it be possible to say whether it will be a transit system,” says a report. In any case, Yerevan has always been guided by considerations of economic expediency.
"Economic projects that had a political subtext have always been rejected by the Armenian authorities," Viktor Sogomonyan said.
Under the current agreement, Iran is to deliver 36bn cum of gas to Armenia over the next 20 years, subject to a possible five-year extension, and an increase in deliveries to 47bn cum. Armenia plans to use all of the gas to produce electricity for subsequent export to Iran, as well as for domestic consumption.