BAKU, Azerbaijan, Feb. 12 (UPI) -- The State Oil Co. of the Azerbaijan Republic said it would start construction this year of a 124-mile natural gas pipeline to Iran, gas officials said.
Nazim Samadzade, the deputy chief at Azerigas PU, said SOCAR is set to build the Sangachal-Azadkend-Astara pipeline, Azerbaijan's Trend news agency reports.
"It is expected that construction of the new pipeline will begin in 2010," he added.
Samadzade said the decision was made to expand its pipeline options to Iran because current infrastructure was inadequate for increased gas exports.
Iran said the mountainous terrain in its northern provinces prevents transits from energy-rich regions in the south of the country, forcing it to rely on imports.
The 916-mile Kazi-Magmoed-Astara gas pipeline delivers 353 billion cubic feet of Azeri gas to northern Iran each year.
Existing infrastructure would allow Iran to import more than 17 billion cubic feet of gas from Azerbaijan each year.
Both countries hold some of the richest gas deposits in the world, though Iran lacks the infrastructure needed to make full use of its gas.
Baku expressed concern recently that U.S. sanctions targeting the Iranian energy sector could undermine its trade relationship with Tehran.
