The agreement was announced by Iranian Petroleum Minister
Mohsen Paknejad following talks in Tehran on Saturday with Davit Khudatyan,
Armenia’s Minister of Territorial Administration and Infrastructure.
Evolving Beyond the Gas-for-Electricity Swap
Iran and Armenia currently operate under a long-standing
"gas-for-electricity" barter agreement, where Iranian natural gas is
exported to Yerevan in exchange for Armenian electrical power.
During the ministerial summit, Tehran formally proposed
transitioning toward a direct commercial gas export framework.
"Iran’s explicit proposal is to define a new commercial
model for gas exports. Implementing this proposal requires evaluating existing
infrastructure and assessing the potential for expanding gas trade beyond
Armenia through transit routes across its territory," Mohsen Paknejad,
Iranian Petroleum Minister said.
Paknejad acknowledged that while the proposed commercial
export model involves technical and financial complexities, the newly formed
working group will conduct expert feasibility studies to pave the way for
execution.
Broadening Energy Infrastructure and Technical Services
The bilateral negotiations also covered several key avenues
for expanding regional energy integration and technical assistance:
- Refining
Infrastructure: Evaluating options for Iranian involvement in
constructing and upgrading refining capacity in Armenia.
- Petroleum
Product Supply: Securing reliable Iranian deliveries of refined
petroleum products to meet Armenian domestic fuel demand.
- Engineering
& Technical Services: Exporting Iranian technical expertise,
equipment, and engineering services for Armenian energy infrastructure
projects.
Both ministers agreed that the joint working group will
convene immediately to finalize actionable proposals ahead of their next
bilateral summit.