Armenia to Boost Iranian Gas Imports Amid Russia Price Hike Threat

Armenia's government is planning to significantly increase imports of natural gas from neighboring Iran, according to Minister of Territorial Administration and Infrastructures Davit Khudatyan.

The decision has no connection to Russia's threats to hike the price of its natural gas supplied to Armenia, Khudatyan insisted. Instead, it's an economic activity that benefits both countries.

Khudatyan met with Iran's Vice President Hamid Pourmohammadi and Oil Minister Mohsen Paknejad during a visit to Tehran over the weekend. They agreed to establish a joint task force to explore ways to deepen Armenian-Iranian energy ties, including expanding a long-running gas-for-electricity swap arrangement.

The existing capacity of Armenia's gas pipeline leading to Iran is greater than the current flow of gas, Khudatyan noted. He also mentioned that the third power transmission line connecting Armenia to Iran is expected to be completed before the end of this year, which will allow for a doubling of the gas-for-electricity exchange.

According to Ara Marjanyan, an Armenian energy expert, the Iranian gas currently costs twice as much for Armenia as the Russian gas supplied via Georgia. However, the swap arrangement is beneficial for Armenia due to its lower cost.