Regional

Armenia and Iran to start construction of oil pipeline soon

  • Thursday, November 8, 17:29

The construction of Iran-Armenia oil pipeline will start in the near future, Armenia's Energy and Natural Resources Minister, co-chairman of the Armenian-Iranian  inter-governmental commission, Armen Movsissyan, said today's ceremony on laying the foundation for construction of the Megri Power Plant, in Megri.

To recall, Government of Armenia approved the project of technical maintenance regulations for Tabriz (Iran) - Yeraskh (Armenia) oil products pipeline on April 12. The project "Technical maintenance regulations of the oil products pipeline" was developed to ensure safe delivery, storage and sale of Iranian oil products in Armenia. The construction of the Armenian section of the pipeline will cost $100 million. The Iranian party will invest the given funds and then receive the proceeds from the sale of oil products in Armenia. The two parties are expected to create a JV on parity basis.

By data of the Customs Service of Armenia, in 2011 import of oil products in Armenia fell to 357,661 tons versus 379 thousand tons in 2010. Import of cars in 2011 grew to 24.6 thousand cars versus 17.1 thousand in 2010. Import of oil products fell, as most drivers prefer gas to petrol (around 80% of total) because of the high petrol price. The pipeline will make it possible for Armenia to acquire oil products for the prices of the Persian Gulf states (by $15-$20 lower than the European prices).

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