"We are interested in the project to construct an Iran-Armenia pipeline. However ... the pipeline being built has a smaller diameter than was expected at 700 mm," said Revaz Gachechiladze, Georgia's ambassador in Armenia.
If constructed, the pipeline would not be enough even for Armenia, he said, adding that both Georgia and Armenia would benefit from transit using a pipeline of larger diameter.
The agreement to build the 141-km pipeline was signed in May 2004, and will cost an estimated $210-220 mln, including $120 mln for the Armenian section. Construction started in Armenia November 30, and the project is to be finished by January 2007.
Under the agreement, Iran will supply Armenia with 36 bln cubic meters of natural gas over 20 years, with an option to extend the contract for five years and increase total supplies to 47 bln cu m. The natural gas will be used for electricity generation for Armenia's domestic needs and for export to Iran.
Iran began natural-gas supplies to Georgia via Azerbaijan to ease a crisis that erupted amid freezing temperatures in January after explosions on a pipeline in Russia, previously Georgia's only supplier. However, frequent supply interruptions due to technical failures in Azerbaijan have caused problems with the transit.
