"The construction of the 42kilometere-long strip of the gas-main 700 millimetres in diametre will begin in Armenia from the Megri-Kadjaran strip," said Levon Vardanyan of the Armenian Energy Industry Ministry. Finances for the construction of the said strip will be provided by Iran in accordance with the available agreements while the remaining strip to Ararat and Yerevan will be built later.
The agreement signed by Armenia and Iran on May 13, 2004, provides for the construction of an Iran-Armenia gas-main whereby Armenia will receive 36 billion cubic metres of Iranian gas over a period of 20 years, with 1.1 billion cubic metres a year, in exchange for electricity.
The gas-main project with a length of 141 kilometres (41 kilometres across the territory of Armenia and 100 kilometres across the territory of Iran) is planned to be completed at the end of 2006. Early estimates indicate that the Armenian side will invest about $90 million while Iran's share will be some $120 million.
The gas-main running from Teheran to Yerevan across the Megri strip of the border between the two states will also enable transit deliveries of Turkmen gas to Armenia via Iran.
