Armenia, Iran agree to increase mutual gas and electricity supplies

YEREVAN. Aug 10 (Interfax) - Armenia and Iran signed a document on Thursday which extends their gas-for-electricity agreement and increases Armenian gas imports from Iran and electricity exports to Iran.

The document was signed by the general director of the Yerevan Thermal Power Plant, Aram Kazaryan, and Iran's deputy minister of petroleum and head of the National Iranian Gas Company (NIGC) Majid Chegeni, the press service for Armenia's Ministry of Territorial Administration and Infrastructure said.

The gas-for-electricity agreement, up to now valid until 2026, has been extended to 2030.

"The extension of the contract makes it possible to increase gas imports and electricity exports, which will undoubtedly have a positive effect on both countries' economic development," Territorial Administration and Infrastructure Minister Gnel Sanosyan was quoted by the press service as saying.

The ministry did not say how much gas and electricity would be imported and exported, nor how the calculations would be made.

Armenia has imported gas from Iran since 2009, which it then processes into electricity and exports to Iran at a rate of three kilowatt-hours (kWh) per one cubic meter of natural gas. The participating power plants produce 4-4.5 kWh from one cubic meter of natural gas, and the surplus remains in Armenia.

The natural gas imported from Iran is for use only under the gas-for-electricity program.