Minister: Georgian side not ready yet to implement project of Iranian gas transit

ArmInfo. Iran's minister of petroleum will visit Armenia in the near future, Iranian Ambassador to Armenia Seyed Kazem Sadjadi said on sidelines of the Economic Forum "Armenia as a Bridge to Large Markets" on September 20, when commenting on the increase of gas supplies to Armenia and the possibility of the Iranian gas transit to Georgia via Armenia.

According to the ambassador, during the upcoming visit of Iran's Minister of Petroleum (Bijan Namdar Zanganeh  - editor's note), among other issues, negotiations were held around the prospects of the Iranian gas transit to Georgia. The diplomat said the issues related to Armenia are in the focus of Iran's attention. In this context, Ambassador Seyed Kazem Sadjadi recalled that during the recent months when Armenia needed more gas supplies, the Iranian side tried to assist the country in the issue. The authorities of Iran are working towards promotion of the projects meeting the interests of Armenia, the diplomat said.

The Georgian side is not ready to implement the given project yet, said Vache Gabrielyan, Minister of International Economic Integration and Reform. The minister explained that Georgia perhaps enjoys certain preferences and discounts by other producers. That is why the issue is still at the stage of discussion, Gabrielyan said.

Earlier, in July, IRNA media outlet reported with reference to the country's Oil Minister Bijan Namdar Zanganeh that the test agreement on the export of Iranian gas to Georgia via Armenia was concluded. "Iran has signed up a miniature tentative deal with a Georgian purchaser for gas sale, which is hoped to be in effect this year with the passage of Iranian gas through Armenian soil," Iran's Minister of Petroleum Bijan Zangeneh said after the meeting with Armenia's Minister of Energy and Natural Resources Levon Yolyan, IRNA news agency said. "Of course, Armenia is not a major consumer but can open an important way for Iranian gas exports and in this field there has been agreement between the two sides", the IRNA quotes Iranian Minister as saying. According to him, Iran seeks to increase export of natural gas to Armenia from, current mln cubic meters to 3mln cubic meters by 2019.

It was reported earlier that the Government set up the EnergaImpEx CJSC, which will increase natural gas imports from the Islamic Republic of Iran, making more efficient the use of the Iran-Armenia gas pipeline.  Meantime, the Georgian side has repeatedly said there is no agreement on export of Iranian gas to Georgia.  Azerbaijan is the key supplied of gas to Georgia. That country imports insignificant volumes of gas from Russia too.

To recall, Armenian-Iranian gas pipeline was opened in 2007.  The two countries signed a gas and power barter deal in 2004 for a period of 20 years. The capacity of the gas export pipeline is about 2.3 billion cubic meters annually and based on a deal between the two sides, Iranian exported gas will be consumed by electricity generation power plants and instead Iran will import electricity from Armenia. Currently Iran supplies 370 mln cubic meters of gas to Armenia annually. In the future when two new units of thermal plants in Yerevan and Vanadzor are put into operation the supplies may reach 1.2 bln cubic meters. Earlier in January, Head of the National Iranian Gas Exports Co Ali-Reza Kameli said that Iran is negotiating on gas supply to Georgia via Armenia. The supply may total 300-500 mln cubic feet daily. The main consumers will be the electric power plants in Georgia.