EghtesadOnline: Iran has exported 250 million cubic meters, or just over 1 million cubic meters per day, of natural gas to Armenia since the beginning of the current fiscal year on March 21, the managing director of Iranian Gas Transmission Company said on Saturday.
“Based on the contract, the country supplies gas to Armenia and imports electricity in exchange,” Saeed Tavakkoli was also quoted as saying by Shana.
A 20-year contract was reportedly signed in 2004 and took effect in mid-2009. According to the agreement, Iran's natural gas is used by Armenian power plants to generate electricity, which in return is exported to Iran. Tehran receives 3.2 kilowatt-hours of electricity from Yerevan in exchange for 1 cubic meter of natural gas, according to reports.
Tavakkoli added that gas is destined for the northwestern neighboring country via a 30-inch pipeline with a capacity of transporting 2.3 billion cubic meters of natural gas per annum, Financial Tribune reported.
The official noted that the volume of gas exports in the previous fiscal year totaled 365 million cubic meters.
Iran and Armenia's power grids are linked by two electricity lines and a third is under construction.
Hamidreza Araqi, managing director of National Iranian Gas Company, said that the power line, to be completed by the end of next year, is part of an agreement signed by Iran, Russia, Armenia and Georgia to synchronize their power grids by 2019.
Araqi noted that Iran's electricity exchange with Armenia would increase fourfold to around 1,200 megawatts, once the construction of the third power transmission line is complete.
Gas supply to Armenia is fractional compared to Turkey and Iraq's imports of Iranian gas. Iran has exported 5.4 billion cubic meters of gas to Turkey during the first six months of the current fiscal year (March 21–Sept. 22). Gas export to Turkey stood at 8 billion cubic meters in 2016. The country has also supplied 1.2 billion cubic meters of gas to Iraq since late June.
"Iran has planned for the export of up to 25 million cubic meters of gas per day to Baghdad," Tavakkoli recently said in an interview. Iran produces over 800 mcm/d of natural gas, most of which is consumed domestically.