By Lia Avagyan
Iranian gas cannot be an alternative to Russian gas, according to Hakob Vardanyan, former Deputy Minister of the Ministry of Territorial Administration and Infrastructure, who was responsible for the energy sector.
Speaking at a discussion organized by CivilNet in Yerevan on Wednesday on Armenia’s energy security, Vardanyan stated that Iranian gas is nearly twice as expensive for Armenia as Russian gas.
Currently, Armenia imports gas from Russia for $165 per 1,000 cubic meters. Russian gas entering Armenia is calculated based on calorific value, with the monthly price fluctuating around $170.
According to Vardanyan, Iran cannot serve as an alternative to Russia for gas imports because Armenia faces technical challenges in importing gas from Iran during the winter months—at least four months of the year. In Iran’s northern regions, he explained, there is insufficient capacity to supply gas.
Armenia imports gas from Iran through the Iran-Armenia pipeline, commissioned in 2007. The pipeline is owned by Gazprom Armenia, a subsidiary of the Russian energy giant Gazprom, which also holds a monopoly over Armenia’s gas distribution network. The pipeline is 140 km long and extends from Iran to Armenia. The Iranian section is 100 km long, running from Tabriz to the Iran-Armenia border. The Armenian section extends from Meghri to Spandaryan.
Under an agreement between the Armenian and Iranian governments, Armenia returns 3 kWh of electricity for every cubic meter of gas imported from Iran.
Vardanyan noted that Armenia’s daily gas demand during winter months ranges from 12 to 16 million cubic meters, while the maximum volume imported from Iran since the pipeline’s operation has been 4.5 million cubic meters per day. The pipeline’s maximum capacity is 6 million cubic meters.
He pointed out that even importing 4.5 million cubic meters of gas from Iran has been difficult, especially during cold months: “Even in summer, when gas consumption is lower, it has not been possible to secure such long-term imports from Iran.”
Emphasizing that Iranian gas is nearly twice as expensive as Russian gas, Vardanyan said that Iranian partners have consistently argued that they cannot sell gas to Armenia at a lower price than they sell to Turkey, as Turkey receives significantly larger volumes. Additionally, Iranian gas has about 6% lower calorific value than Russian gas.
Vardanyan believes that even if the price of Russian gas for Armenia were to increase, it is unlikely to exceed the cost of Iranian gas. He also highlighted technical challenges related to Iranian gas transportation: “Even if Iran could technically supply us with 4-4.5 million cubic meters of gas for seven to eight months at Russia’s current price, we would still face issues during the winter months.”
After Belarus, Armenia purchases Russian gas at the lowest price. Many observers consider the low cost of Russian gas a political price, as Moscow heavily relies on gas as a tool in its foreign policy.
Read the article in Armenian: Իրանական գազը չի կարող այլընտրանք լինել ռուսականին. նախկին փոխնախարար
The post Iran cannot replace Russia as Armenia’s gas supplier: former official appeared first on CIVILNET.
