Armenia can be a conduit for exporting Iran’s electricity to Eurasian countries, Armenian Minister of Territorial Administration and Infrastructure said in Tehran on Sunday.
In talks with Energy Minister Reza Ardakanian, Suren Papikyan said: “Armenian authorities are interested in the transit of Iranian electricity to other countries in the region,” the Energy Ministry news service Paven quoted him as saying.
He said economic relations between the two countries should grow further and in line with cordial political ties.
Papikyan voiced readiness to build cooperation with Iran, especially in the key energy and affiliated sectors.
Regarding work-in-progress of the third power transmission line between the two countries, Ardakanian said the project would be completed by the end of 2020.
“Sao far work on the transmission line has shown 60% progress and the relevant substation is 30% through.”
Armenia annually exports 350 megawatts of electricity to Iran in exchange for gas it buys from Iran. Upon completion of the third line estimated to cost $120 million, this volume will increase to 1,000 MW.
Referring to plans to synchronize Iran’s power grid with Russia, Ardakanian said: “There are two ways to connect the Iran and Russia electricity networks. The first could be via Azerbaijan and the second through Armenia and Georgia”.
Negotiations are underway with the two countries and Tehran will opt for the route on which agreement is reached sooner, he said.
Gas Export
Armenia has no proven reserves of oil or gas and imports almost all its gas from Russia. The Iran-Armenia gas pipeline (140km) can reportedly provide more fuel to that country if needed.
Iran has said gas supply to Armenia can increase from the current one million cubic meters per day and could be undertaken under a barter system.
The two countries have cooperated for years in gas and electricity swap, and bilateral economic and political ties have grown in tandem with increase in trade.
Tehran receives 3.2 kilowatt-hours of electricity from Yerevan in exchange for 1 cubic meter of natural gas.
Speaking with Papikyan, Oil Minister Bijan Namdar Zanganeh described the energy sector as the most important part of bilateral relations, adding bartering gas for electricity with Armenia is one of the areas of cooperation.
The two nations signed a gas-for-electricity barter deal in 2004 for 20 years. According to the contract, Iran's gas is used by power plants in the Caucasian state that in turn exports electricity to Iran in summer.
President Hassan Rouhani and Armenia’s Prime Minister Nikol Pashinyan in Tehran last February discussed ways to bolster ties.
“Iran and Armenia can improve collaboration in the energy sector, including gas and electricity, both bilaterally and multilaterally,” Rouhani said at the time.
Pashinyan expressed interest to work with Iran in diverse areas such as energy, economy, agriculture, transport, ICT and tourism.
