Iran plans to ship natural gas to Georgia via Armenia
12.01.2016,
10:15
Iran has held negotiations with Georgia on sending its gas to the Caucasian nation through Armenia, Managing Director of the National Iranian Gas Exports Company (NIGEC) Alireza Kameli said earlier this month.
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YEREVAN, January 12, /ARKA/. Iran has held negotiations with Georgia on sending its gas to the Caucasian nation through Armenia, Managing Director of the National Iranian Gas Exports Company (NIGEC) Alireza Kameli said earlier this month.
“Based on negotiations with Georgia, we are supposed to take gas to the Armenian border, for Georgia to receive it at its border with Armenia,” he was quoted as saying by state-owned IRNA news agency.
“For signing a deal, however, the gas exports plan must be economical for Georgia,” Kameli said, without elaboration.
Iran is currently exporting gas to Armenia in exchange for electricity. Kameli stressed that the planned gas exports to Georgia were intended for domestic use and not for Europe.
“The issue of exports to Europe through a pipeline is out of question in our view and our priority is exports in LNG form (to Europe),” he said.
With more than 34 trillion cubic meters under its belt, Iran owns the world’s largest natural gas reserves but its share of the global trade in gas is less than one percent.
The gas pipeline between Armenia and Iran was commissioned in 2007. In return for Iranian gas Armenia ships electricity to Iran—3 kWh for one cubic meters of gas. In 2014 Armenia received 383 million cubic meters of Iranian gas at $189 for 1,000 cubic meters.
The Iranian gas is not sold to households or enterprises; it is converted into electricity by the Yerevan thermal power plant and much of it is shipped back to Iran. The pipeline’s maximum capacity is estimated at 2 billion cubic meters per year. -0-
“Based on negotiations with Georgia, we are supposed to take gas to the Armenian border, for Georgia to receive it at its border with Armenia,” he was quoted as saying by state-owned IRNA news agency.
“For signing a deal, however, the gas exports plan must be economical for Georgia,” Kameli said, without elaboration.
Iran is currently exporting gas to Armenia in exchange for electricity. Kameli stressed that the planned gas exports to Georgia were intended for domestic use and not for Europe.
“The issue of exports to Europe through a pipeline is out of question in our view and our priority is exports in LNG form (to Europe),” he said.
With more than 34 trillion cubic meters under its belt, Iran owns the world’s largest natural gas reserves but its share of the global trade in gas is less than one percent.
The gas pipeline between Armenia and Iran was commissioned in 2007. In return for Iranian gas Armenia ships electricity to Iran—3 kWh for one cubic meters of gas. In 2014 Armenia received 383 million cubic meters of Iranian gas at $189 for 1,000 cubic meters.
The Iranian gas is not sold to households or enterprises; it is converted into electricity by the Yerevan thermal power plant and much of it is shipped back to Iran. The pipeline’s maximum capacity is estimated at 2 billion cubic meters per year. -0-
