July 2, 2016 - 13:59 AMT
PanARMENIAN.Net - Head of National Iranian Gas Exports Company (NIGEC) said an agreement was reached with Armenia over a threefold increase in Iran’s gas exports to the Caucasus country, Mehr news agency reported Saturday, July 2.
Following an earlier power deal between Iran and Armenia over increasing the electricity exchange volume, the two countries reached a new accord for boosting exports of natural gas.
Estimations reveal that electricity and gas exchanges between Iran and Armenia will soar threefold.
NIGEC chief Alireza Kameli said Iran is now deploying one million cubic meters of natural gas to Armenia per day asserting that “the figure will hit three million cubic meters overall.”
“The two sides are currently preparing the required infrastructure for boosting natural gas exchange,” stressed the official adding that “the accord will soon be finalized.”
Kameli pointed to the country’s gas production capacity stating that “at present, there are no limitations for increasing gas exports to Armenia.”
Last summer, the two countries signed a contract for the construction of the third 400-kV power transmission line worth more than 107 million euros.
The transmission line between Iran and Armenia is 275 kilometers long and the entire process of procurement of equipment, construction, installation and commissioning will be carried out by the Iranian party.
It has been estimated that with construction of the new power network, electricity exchange volume between Iran and Armenia will rise from the current 300 to about 1000 megawatts.