All construction operations have been completed, and the pipeline is being tested now. In a few months the Iranian gas pipeline will be connected to Armenia's gas distribution network.
The cost of the Iran-Armenia gas pipeline, which is 141 km long and 700 mm in diameter, is estimated at $220 million to $250 million, and the Armenian part costs $120 million.
At the first stage Armenia will annually receive about 400 million cubic meters of gas, a figure that is expected to grow to 2.3 billion.
Under the contract, Iran should deliver to Armenia 36 billion cubic meters of natural gas. The contract could be extended another five years with total gas supplies rising to 47 billion cubic meters. In exchange, Armenia will provide Iran with 3 kW of electricity per cubic meter of gas, and also use Iranian natural gas for domestic purposes.
The construction of the pipeline's first Armenian leg, Megri-Kadzharan, was launched on November 30, 2004. Iran issued Armenia a $28.2 million loan for the construction of the 40 km long sector with a five-year maturity from the pipeline commissioning date.
Sanir, an Iranian company, is building the second, 150 km leg across from Kadzharan to Ararat via Sisian and Dzhermuk.
Although the gas pipeline's diameter is 700 mm, it is likely to be expanded to 1,500 mm and become a trunk pipeline, capable of pumping 27 billion to 30 billion of gas annually.
ArmRosgazprom, an Armenian-Russian venture, is expected to hold the license.
According to earlier plans, the Iran-Armenia gas pipeline was to be commissioned in December 2006, however, the opening was postponed until this spring due to unfavorable weather conditions, the Armenian side said.
Experts believe the gas pipeline project is a step toward enhancing the safety of Armenia's energy sector, which will also provide the republic with an alternative energy source.
