02 02 2007 - Iran-Armenia gas pipeline to go on stream in spring - official

YEREVAN (RIA Novosti) - A natural gas pipeline linking Iran and Armenia will be put into operation this coming spring, a spokesman for the Armenian president
said Monday.

The construction of the 141-kilometer (90-mile) pipeline from Iran began in 2004. It has a price tag of about $210-220 million, including $120 million for
the Armenian section.

"The gas pipeline will be commissioned this spring. Only then will it be possible to say whether it will be a transit system. 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 36 billion cubic meters of natural gas to Armenia over the next 20 years, subject to a possible five-year extension and an increase in deliveries to 47 billion cubic meters.

Armenia plans to use all of the gas to produce electricity for subsequent export to Iran, as well as for domestic consumption.

V.V