Iran to supply gas to Armenia

TEHRAN, Aug. 27 (UPI) -- Iran plans to start exporting 39 billion cubic feet of gas per year to Armenia beginning in October, the National Iranian Gas Co. said Wednesday.

Rasoul Salmani with the export division of the state-run gas firm said the deal comes from negotiations between the two countries that concluded last week, Iran's Mehr News Agency said.

In exchange, Iran will import some 3.3 billion kilowatts per hour of electricity from Armenia through the city of Tabriz in northwestern Iran.

"Iran plans to annually export some (39 billion cubic feet) of gas to Armenia. In the first phase Iran will export less volume to Armenia but will increase the export volume gradually," Salmani said.

Exports will travel through a $28.2 million pipeline to the Armenian capital, Yerevan.

Salmani said Iran will satisfy all of Armenia's gas needs by 2010.