Iran to Provide Preferential Gas Price to Friendly Countries

Iran may adopt a non-commercial approach in exporting its gas to friendly countries, and give them discounts on exported energy, Iran's ambassador to Armenia Mohammad Reisi announced on Friday.

"The agreement we signed with Armenia some years ago to export natural gas to that country in return for electricity exports is still in place. Despite some changes in the pricing, we will continue to respect the agreement. Iran has a different policy towards friendly countries and may consider a discount mechanism for them, but generally we follow international prices for gas," Tasnim News Agency quoted Reisis as saying in Yerevan.

According to the bilateral agreement between the two countries, Iran barters one cubic meter of gas for three kilowatt hours of electricity. 

“Iran does not need electricity, it is an exporting country in the sphere, and the abovementioned barter deal is a vivid demonstration of Iran’s friendly attitude towards Armenia,” Resis said, reported the news agency.

Speaking about the prospects of Armenia becoming a transit route for Iranian gas, the ambassador said, “The matter is still open for further discussions. Armenian infrastructures could make it possible for us to transit our gas through Armenia’s territory.”

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