Aug 23, 2008, 6:54 PM

Third Azerbaijan pipeline will save Iran $7b a year

TEHRAN, Aug. 23 (MNA)— Commissioning the third Azerbaijan gas pipeline will prevent the outflow of over $7 billion a year, the Iranian Gas Engineering and Development Company (IGEDC) managing director said here on Saturday.

“Taking the average price of a barrel of crude oil at $100 and one cubic meter of natural gas at ¢30, it is concluded that replacing oil products with natural gas will save over $22 million per day which will sum up to $7.3 billion per year,” Alireza Gharibi explained, PIN reported.

 

He went on to note that third Azerbaijan gas pipeline will help tackle gas supply deficit particularly in the country’s western and northwestern provinces.

 

Some 8 trillion rials ($870 million) has been expended for the pipeline.

 

MF/MG/MRK

END

MNA

News ID 29527

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