Iran and Armenia to Establish Joint Energy Working Group

TEHRAN — Armenian Minister of Territorial Administration and Infrastructure Davit Khudatyan, who is on a working visit to Iran, met with Iranian Oil Minister Mohsen Paknejad, according to Armenia’s Ministry of Territorial Administration and Infrastructure.

The two officials discussed increasing the volume of natural gas supplied to Armenia and expanding bilateral trade in the energy sector.

During the meeting, the sides agreed to establish a specialized joint working group that will explore new areas of energy cooperation and develop joint initiatives.

Iran’s Mehr News Agency previously reported that the working group would primarily focus on natural gas trade.

The Iranian oil minister noted that the existing energy partnership between the two countries is based on the gas-for-electricity exchange agreement. However, he said Iran had proposed a new commercial framework aimed at increasing its natural gas exports.

According to IRNA, following the meeting, Paknejad described Armenia as “one of the Islamic Republic’s very good neighbors,” emphasizing that the two countries have numerous opportunities for cooperation, particularly in the energy sector, that should be further developed.

The Armenian side reported that the meeting also addressed the expansion of cooperation and the deepening of bilateral engagement in infrastructure and the oil industry.

On July 19, Iranian Ambassador to Armenia Mehdi Sobhani said that the volume of natural gas supplied from Iran to Armenia would soon be doubled.

Since 2009, Armenia has imported natural gas from Iran, converted it into electricity at a thermal power plant, and supplied the electricity back to Iran.

The original agreement was scheduled to expire in 2026. However, in August 2023, Armenia and Iran extended the gas-for-electricity program through 2030.