Iran-Armenia pipeline construction starts

TEHRAN, March 25 (UPI) -- Armenia began construction on a 186-mile pipeline to bring oil products from the Tabriz refinery in northern Iran in exchange for electricity.

"The pipeline would be a safe route for importing oil products to Armenia that will increase security of energy supply and decrease the cost of fuel import," Armenian Energy Minister Armen Movsisyan said.

The project would bring 81 billion cubic feet of natural gas from refineries in Tabriz each year, which is about the same amount Armenia imports from Russia currently through Georgia.

Armenia will exchange 3 kilowatts of electricity with Iran for each cubic meter (35.3 cubic feet) of oil products, Iran's Press TV reports.

Both sides signed a series of agreements in the energy sector and tourist industry in December. A March 2007 deal outlined the provisions for an 87-mile natural gas pipeline meant to relieve Armenia's dependency on Russian resources.

Europe and the surrounding region have moved to diversify the energy transit sector following a gas dispute between Ukraine and Russia that left European customers without gas for weeks in January.