Armenia's Import of Iranian Gas May Reach 1 bcm

Armenia may import nearly 1 billion cubic meters of natural gas from Iran annually by mid-2014, Armenian minister of energy and natural resources Armen Movsisyan said.

The minister was replying to the question asked during 2012 budget implementation talks Wednesday as to why Armenia imports three times less gas from Iran than it is indicated in the bilateral agreement which foresees 1.1-billion-cubic meter annual import, Arka News Agency reported.  

Movsisyan said Armenia should provide Iran with electric energy in exchange for the gas. 

In 2004, Armenian government initiated construction of Iran-Armenia gas pipeline to extend the gas supplies and create a second gateway to the country. The pipeline was launched in 2007.

Under the agreement, Iran is to supply 36 billion cubic meters of gas to Armenia over 20 years. The agreement has a provision for possible extension for another five years, with the volume of gas supplies to be increased to 47 billion cubic meters, Arka News Agency said.