Iran has proposed a new project to Armenia to expand natural gas exports
26.07.2026,
13:42
Iran and Armenia have agreed to establish a joint specialized working group to develop cooperation in the energy sector, with a particular focus on natural gas trade, Tasnim News Agency reported.
YEREVAN, July 26. /ARKA/. Iran and Armenia have agreed to establish a joint specialized working group to develop cooperation in the energy sector, with a particular focus on natural gas trade, Tasnim News Agency reported.
The agreement was reached following a meeting between Iranian Oil Minister Mohsen Paknejad and Armenian Minister of Territorial Administration and Infrastructure David Khudatyan, held in Tehran on Saturday.
Paknejad thanked Armenia for its support of Iran during difficult times and reaffirmed Tehran's readiness to strengthen cooperation with its northwestern neighbor within the limits of its existing technical and economic capabilities.
According to the Iranian Oil Minister, the parties discussed a wide range of potential energy projects, including expanding bilateral trade, exporting engineering services, constructing an oil refinery, and supplying petroleum products to Armenia.
Paknejad also reported that Tehran and Yerevan had agreed to establish a joint specialized working group and proposed launching its work as soon as possible so that concrete results could be assessed during the next round of bilateral talks.
The minister noted that the current energy cooperation between the two countries is based on a mechanism for exchanging Iranian gas for Armenian electricity. Iran, however, proposed a new commercial model aimed at expanding natural gas exports.
He added that implementing this initiative would require a comprehensive assessment of the existing infrastructure, as well as an analysis of the possibilities for expanding gas trade beyond the Armenian market, using Armenia as a regional transit corridor.
Since May 15, 2009, Armenia has been receiving natural gas from Iran via the Iran-Armenia gas pipeline. Under the Gas for Electricity program, Iranian gas is used to generate electricity in Armenia, which is then exported to Iran at a rate of 3 kWh per cubic meter of natural gas. In August 2023, the parties extended the agreement until 2030, providing for the possibility of increasing gas imports and electricity exports.
The agreement was reached following a meeting between Iranian Oil Minister Mohsen Paknejad and Armenian Minister of Territorial Administration and Infrastructure David Khudatyan, held in Tehran on Saturday.
Paknejad thanked Armenia for its support of Iran during difficult times and reaffirmed Tehran's readiness to strengthen cooperation with its northwestern neighbor within the limits of its existing technical and economic capabilities.
According to the Iranian Oil Minister, the parties discussed a wide range of potential energy projects, including expanding bilateral trade, exporting engineering services, constructing an oil refinery, and supplying petroleum products to Armenia.
Paknejad also reported that Tehran and Yerevan had agreed to establish a joint specialized working group and proposed launching its work as soon as possible so that concrete results could be assessed during the next round of bilateral talks.
The minister noted that the current energy cooperation between the two countries is based on a mechanism for exchanging Iranian gas for Armenian electricity. Iran, however, proposed a new commercial model aimed at expanding natural gas exports.
He added that implementing this initiative would require a comprehensive assessment of the existing infrastructure, as well as an analysis of the possibilities for expanding gas trade beyond the Armenian market, using Armenia as a regional transit corridor.
Since May 15, 2009, Armenia has been receiving natural gas from Iran via the Iran-Armenia gas pipeline. Under the Gas for Electricity program, Iranian gas is used to generate electricity in Armenia, which is then exported to Iran at a rate of 3 kWh per cubic meter of natural gas. In August 2023, the parties extended the agreement until 2030, providing for the possibility of increasing gas imports and electricity exports.
