Iran will export 3 million cubic metres of gas to Armenia per day in return for electricity under a deal due to come into effect in October, a senior Iranian gas official said in remarks published on Sunday.
Iran, which sits on the world's second-largest gas reserves, has said it was ready to pipe gas to its Central Asian neighbour to the north for more than a year but said it was waiting for Armenia's nod for pumping to start. "Based on this agreement, from the start of October, in lieu of ... electricity Armenia gives to Iran, its equivalent in gas will be exported to that country," said Rasoul Salmani, a senior official at the National Iranian Gas Export Company (NIGEC).
"It has been decided the agreement will go into operation despite the problems existing in the gas export project with Armenia," said Salmani, Fars News Agency reported.
He did not give details of the problems faced by Armenia. Under the energy swap contract, Salmani said Iran would export 3 million cubic metres of gas per day in return for receiving 9 million kilowatts of electricity.
Iranian officials could not be immediately reached for comment. The Iranian Oil Ministry's news website, SHANA, reported earlier this month that talks on the deal with Armenia would be held in August. Iran has said the 110 km (70 mile) pipeline to Armenia has a capacity to pump 10 million cubic metres of gas per day.
Despite huge reserves, Iran has been slow to develop exports and has even imported gas from another northern neighbour, Turkmenistan, to supply a region in north Iran far from its big southern gas fields in the Gulf.