By the OGJ Online Staff
LONDON, Dec. 28 -- Russian and French companies will be invited by Iran and Armenia to invest in a new pipeline project linking the two countries.
Iran and Armenia agreed in principle to the construction of a 140-km gas pipeline.
Cost of the project is estimated at $120 million with 100 km of the pipeline to be built in Iran.
It will have the capacity to supply the Armenian gas network with 1.5 million cu m/d. Armenia's gas supplies currently are piped in from Russia. Armenian government officials said the project is designed to reduce dependence on a single supplier. However, the two countries will invite Russian interests to invest along with French companies that have already indicated a willingness to become involved in the project, scheduled to start in the New Year.
An initial accord on an Iranian-Armenian pipeline was signed in 1992, modified in 1995, but never implemented because of financial problems.