Initially, some 700 million cubic metres of Iranian gas will be transported when the pipeline is completed in either 2006 or 2007. Plans are also in the pipeline to eventually boost the load to 1.5 billion cubic metres. In return for the gas, Armenia will supply electricity to Iran.
According to the Armenian government, the Iranian gas will not be sent on to Europe due to “certain difficulties” which it would not elaborate upon. However, it is a known fact Russia and the US are against the project.
Russia wants to remain the world’s leading gas exporter and maintain its strong influence in the East Europe region. The US is not happy with Armenia’s dealings with what it deems is one of its “Axis of Evil” nations.
The construction tab on the Iranian side of the project will be borne by the National Gas Co of Iran. Armenia has yet to announce who will build the Armenian side of the pipeline.
