Armenia is looking to increase natural gas imports from Iran based on an agreement that would allow the neighboring state to receive up to 600,000 cubic meters more gas from the current level of 1 mcm per day, the National Iranian Gas Company's director for international affairs said.
"Yerevan Thermal Power Plant is willing to import more gas to deliver more power to Iran in peak demand hours," Behzad Babazadeh was also quoted as saying by Shana, the National Iranian Oil Company's news agency.
According to the official, an Armenian delegation is expected to visit Tehran next week to negotiate the details of a new deal to exchange gas for electricity.
"If the two sides agree on new prices, Yerevan TPP will be provided with 600,000 cubic meters more natural gas per day," he added, noting that based on a contract signed in 2004, Iran supplies gas to Armenia and imports electricity in exchange. Babazadeh noted that Iran's natural gas is used by Armenian power plants to generate electricity, which in return is exported to Iran. Tehran receives 3.2 kilowatt-hours of electricity from Yerevan in exchange for 1 cubic meter of natural gas.
The official added that gas is destined for the northwestern neighboring country via a 30-inch pipeline with a capacity of transporting 2.3 billion cubic meters of natural gas per annum. "The infrastructure to raise the export has been developed," he said, adding that upcoming talks will yield positive results if Yerevan TPP is able to pay for the gas price and transfers more power to Iran.
Iran and Armenia's power grids are linked by two electricity lines and a third is under construction.
According to Hamidreza Araqi, managing director of National Iranian Gas Company, the power line, to be completed by the end of 2018, is part of an agreement signed by Iran, Russia, Armenia and Georgia to synchronize their power grids by 2019. Araqi noted that Iran's electricity exchange with Armenia would increase fourfold to around 1,200 megawatts, once the construction of the third power transmission line is complete.
Gas Exports Hike
"Natural gas exports experienced a 60% hike during the fiscal 2017-18 compared with the corresponding period of the previous year," Babazadeh said.
According to the official NIGC transferred 13.8 billion cubic meters of gas to target destinations last year and plans are underway to raise the level in the coming years. The country is expected to account for 10% of the global gas export share by 2025, for which not only have new contracts been concluded, but also talks are underway with potential customers in the region, he added.
Iran (34 trillion cubic meters) and Russia (32.6 tcm) hold the largest proven gas reserves, according to BP Statistical Review of World Energy.
Latest surveys on hydrocarbon fields also show that the country's recoverable natural gas reserves have risen by 283 billion cubic meters.
