Iran and Armenia explored grounds to boost collaboration in energy projects in a meeting between Deputy Oil Minister Amir-Hussein Zamaninia and Deputy Minister of Territorial Administration and Infrastructure of Armenia Hakob Vardanyan in Tehran on Saturday.
The agenda included ways of expanding cooperation in electricity, water as well as technical and engineering sectors, ISNA reported, adding that the two sides mainly focused on renewing their contract for swapping gas with electricity.
A 20-year contract was signed by the two countries in 2004 and took effect in mid-2009. According to the agreement, Iranian natural gas is bought by Armenia for power generation and is exported to Iran. Tehran receives 3.2 kilowatt-hours of electricity in exchange for 1 cubic meter of natural gas.
“We have been negotiating with the National Iranian Oil Company for more than a year, but no agreement has yet been reached on the terms of a new contract,” Vardanyan said.
According to the Armenian official, more talks are needed to address technical and financial issues after which another long-term deal will be signed. “National and economic interests of both sides should be taken into consideration in such long-term agreements,” he said.
Iran is connected to Armenia through two electricity lines and a third is under construction. The two countries have different seasons of peak electricity demand. Iran exports electricity to Armenia in winter and imports in summer.
Zamaninia said, “Iran's electricity exchange with Armenia will increase fourfold to 1,200 megawatts when construction of the third power transmission line is complete.”
Iran is determined to complete the project by constructing a 400-kV power transmission line and a 400-kV Substation.
Referring to the bilateral cooperation, he said "Iran's exports to Armenia continue as before." Armenia imports polymer raw materials, petrochemicals, iron, steel and natural gas from Iran.
Armenia’s former Minister of Territorial Administration and Infrastructure Suren Papikyan said earlier that the project would allow his country to boost electricity transit.
According to Papikyan, power transit potential will increase not only with Iran, but also with Georgia, Russia and member nations of the Eurasian Economic Union.
Construction of the high-voltage transmission line is expected to be complete in 2021. This line will boost Armenian electricity export to Iran that is paid for with natural gas via a 140km gas pipeline.
Iran Power and Water Equipment and Service Export Company (SUNIR) is the contractor of the project estimated to cost $400 million.
