Gazprom to Buy Meghri-Kajaran Section of the Iran-Armenia Gas Pipeline

Gazprom is expected to buy the Meghri-Kajaran section of the Iran-Armenia natural gas pipeline, reported RFE’s Armenian Service Wednesday.

The 41-kilometer section runs from the Iranian border to the southeastern Armenian town of Kajaran. The rest of the pipeline, completed in 2008, is already owned by Gazprom Armenia.

Deputy Energy Minister Ara Simonian told RFE’s Armenian service that the Armenian government and Gazprom have already signed a tentative agreement on the sale of the Meghri-Kajaran section. He did not give details of the financial terms or specify when a final deal could be signed.

The state-run High Voltage Electric Networks Closed Joint-Stock Company is the current proprietor of the 41-km section of this pipeline. Gazprom Armenia, on the other hand, is leasing that section.

“The entire [natural] gas supply system of Armenia was under the jurisdiction of Gazprom company,” Simonyan said. “[So,] it was pointless to keep this tiny 40-km section under the responsibility of a non-specialized state-run company.”

A spokeswoman for Gazprom Armenia, Shushan Sardarian, confirmed this information, RFE reported. Sardarian revealed that the tentative accord was finalized in 2007 with a $30 million prepayment made by the company at the time. She said that Gazprom Armenia will likely pay another $9 million to complete the takeover.