IRAN IS interested in constructing a second gas pipeline to its energy-starved neighbour Armenia, the Islamic republic’s parliament speaker Gholam-Ali Hadad-Adel said recently. Speaking during a two-day visit to Armenia, Mr Hadad-Adel said “the two sides are discussing the possibility of the construction of a second Iran-Armenia pipeline”.
He went on to say that a new Iranian gas pipeline would serve primarily to supply Armenia with gas, but added that "the possibility of transporting gas to third countries through Armenia is not excluded. An important part of our relations is co-operation in the area of energy."
Iran has already undertaken the $220-m construction of a gas pipeline to Armenia which has, until now, depended on Russia for all of its gas needs. Under a 20-year contract, Armenia is projected to receive 36bn cum of gas starting in January 2007, breaking Russia's grip on its gas market. Armenia is paying for its share of the pipeline project with electricity that it produces in an ageing nuclear power plant. However, the two countries recently began construction of a hydroelectric power plant on the Araxes River, which serves as the border.
Armenia has been dependent on Russia and Iran for most of its trade because of an economic blockade imposed by Azerbaijan and Turkey over the continuing dispute about Nagorno-Karabakh.
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