Сonstruction of pipeline from Iran to Armenia will be launched in early 2010

YEREVAN, November 19, /ARKA/. Construction of a pipeline from Iran to Armenia with a capacity to ship up to 1.5 million tons of oil products a year will be launched in early 2010, Armenian energy and mineral resources Armen Movsisyan told journalists Thursday.

The pipeline will deliver oil products to Armenian town of Yeraskh, and from there they will be shipped across Armenia by railway and tank trucks.

Experts say when the pipeline comes online it will cut transport expenditures of Armenian petrol importers by 7-8 times. Currently oil products are brought to Armenia from the Georgian port of Poti on the Black Sea by railways, which experts say is not reliable and besides the railways need a major overhaul.

The minister said construction of the pipeline ‘is becoming a reality,’ with all preparatory work being over. He reiterated that construction will be started early next year and will bring to Armenia 1.5 million tons of oil products.

Although Armenia consumers now less than 1.5 million tons of oil product a year, the minister said the shipment volume was calculated with regard to the expected growing demand in the next 10-15 years and re-export possibilities. As part of the project a terminal for oil products and an oil refinery will be built. The latter’s planned capacity is 7.5 million tons. The minister said construction of the oil pipeline, in which Iran and Armenia will hold 50% each, was estimated preliminary to cost $280 million.

According to the minister, Russia said it would like to participate in this project and may buy out 10% of Armenian share.
The 300 km pipeline with 250 mm diamater will stretch from the Iranian Tebriz to Armenian Yeraskh. -0-