The third Iranian-Armenian power transmission line will be completed by the end of 2020, Iran’s energy minister said on Tuesday.
Reza Ardakanian was speaking at the 16th session of the joint intergovernmental commission in Tehran, co-chaired by himself and Armenia’s Deputy Prime Minister Mher Grigoryan, ISNA reported.
“Currently, Iran and Armenia exchange 350 megawatts of electricity. Upon the completion of the third line, the capacity to exchange electricity between the two countries will exceed 1,000 megawatts,” Ardakanian said.
The new line is designed to significantly increase Armenian electricity exports to Iran that pays for them with natural gas.
“The capacity of gas transportation from Iran to Armenia can increase and as was agreed, multilateral negotiations would be conducted to increase gas exports in exchange for the required goods,” the energy minister added.
Based on a contract signed in 2004, Iran supplies gas to Armenia and imports electricity in exchange. Iran's natural gas is used by Armenian power plants to generate electricity that is exported to Iran.
Tehran receives 3.2 kilowatt-hours of electricity from Yerevan in exchange for 1 cubic meter of natural gas.
Armenia seeks to increase natural gas imports from Iran and receive up to 600,000 cubic meters more gas from the current level of 1 million cubic meters per day.
The two sides also agreed to take practical steps for building a 100-MW hydroelectric plant on the Armenian-Iranian border.
“The Armenian private sector and other interested countries will invest in the power plant, and its electricity will be purchased at a guaranteed rate by Iran,” Ardakanian said.
Other Agreements
Armenian officials agreed to take measures to control the water quality of Aras River that flows along the Iran-Armenia border.
According to Ardakanian, one of the bilateral agreements pertains to the creation of special protected border areas in Iran and Armenia, and the preservation of biodiversity and threatened species
Originating in Turkey, Aras flows eastward and forms international boundaries between Armenia and the Republic of Azerbaijan to the north and Turkey and Iran to the south. After about 1,070 km, it joins Kura River in Azerbaijan before reaching Caspian Sea.
The energy minister stated that Iran is ready to build a refinery in the neighboring country if it is financed by the Armenian side.
Referring to aviation cooperation, Ardakanian said currently there are only six flights per week between the two countries, but it was agreed to increase it to 50 flights a week.
Ardakanian and Grigoryan also discussed several other issues for deepening mutual ties and discussed the status of joint energy projects and the opportunities for enhancing cooperation in the fields of energy, environmental protection, transport, trade, economy, education and science.
They attached importance to the ratification of the agreement on the creation of a free trade zone between member states of the Eurasian Economic Union and Iran by their parliaments.
The Armenian deputy premier stated that it is possible to take maximum advantage of the opportunities created within the scope of the agreement and that Armenia, as the only member state of EEU with a land border with Iran, will make its contribution for promoting trade relations.
Grigoryan noted that the current high level of Armenia-Iran relations based on mutual confidence and friendly traditions will help deepen cooperation.
