By Real Tribune
Every year, under the “Gas for Electricity” agreement, 365 million cubic meters of gas are imported from Iran to Armenia. Although the gas pipeline’s throughput capacity reaches 2.3 billion cubic meters per year, Armenia used a capacity of only 500 million cubic meters (in some years – about 365 million cubic meters).
YEREVAN (IA Realist). Iran is ready to increase gas supplies to Armenia by four times, according to the Iranian Ambassador to Armenia, Mehdi Sobhani, in an interview with Civilnet, commenting on the development of the “Gas in Exchange for Electricity” program.
“Between the two countries, a gas pipeline has been laid, and two months ago, we extended the contract for gas supply in exchange for electricity. This was a significant strategic step in the relations between the two countries. Thanks to this contract, we will be able to increase the import of electricity from Armenia in exchange for gas threefold or even fourfold. We have very good programs with Armenia. The construction of a third power transmission line is underway, and I hope it will be completed in the coming months,” said Sobhani.
According to the Iranian diplomat, in 2022, the trade volume between Armenia and Iran amounted to $711 million, and in 2023, it could reach $1 billion. Sobhani also noted the construction of the 32-kilometer Agarak-Kajaran road, which “has strategic importance and is the largest project signed between the government of Armenia and Iranian companies.”
“We have always encouraged the arrival of Iranian companies in Armenia and the use of employment opportunities in Armenia, the production of goods here, and export to other countries. Overall, I can say that our trade and economic ties have a good dynamic of development, and we will continue to move in this direction decisively,” explained the head of the Iranian diplomatic mission.
Under the “Gas in Exchange for Electricity” agreement, 365 million cubic meters of gas are imported from the Islamic Republic of Iran to Armenia annually. Although the gas pipeline’s capacity reaches 2.3 billion cubic meters per year, Armenia has utilized only 500 million cubic meters (in some years, about 365 million cubic meters). Earlier, the Iranian side announced its intention to double natural gas supplies to Armenia as part of an expanded gas-for-electricity exchange deal, which will be valid until March 2031. According to the new agreement, gas deliveries to Armenia will double to 2 million cubic meters per day. The Iran-Armenia gas pipeline was launched on May 15, 2009.