“Armenia will receive petrol and diesel fuel from the oil refinery located in the Iranian city of Tabriz through the pipeline, construction of which starts next spring,” Movsisian said.
Speaking at a news conference, Movsisian added that the joint project was part of Armenia’s efforts to diversify its energy supplies, which were disrupted by the conflict in neighboring Georgia in August.
Iran and Armenia will each finance half of the project, which is set to cost 200 to 240 million dollars.
The 300-kilometer pipeline will run from Iran’s northwestern city of Tabriz to Armenia’s northeastern city of Eraskh, where a receiving terminal will also be built.
Construction is expected to take two years to complete, Movsisian told reporters.
The announcement came one week after Movsisyan met Iran’s Foreign Minister Manouchehr Mottaki in Tehran.
The two sides signed a Memorandum of Understanding for cooperation in a number of fields, including energy, oil, petro-chemistry and tourism.