Gazprom interested in Russia-Armenia-Iran oil refinery

October 11, 2007 - 0:0

Gazprom said it is still positive about joint project between Russia, Iran, and Armenia to construct an oil refinery in Armenia.

Gazprom Neft — the oil arm of Russian energy company Gazprom — is reportedly considering an investment of $1.7 billion to build the joint oil refinery, which would process oil pumped from Tabriz in northern Iran, “The Messenger” reported.
Gazprom officials say it will process 5–6 million tons of oil annually. Some would be used by Armenia; most would be shipped back to Iran.
Valery Golubev, head of Gazprom’s Investment and Construction Department, commented that the project is still in the offing but an appropriate 400 hectare site for the refinery has not yet been found.
Some Russian commentators suggest the project is motivated by political rather than financial interests, as usually the most economically productive location for an oil refinery is near a major pipeline route or at a seaport.
However, Gazprom replies that with effective management, the refinery could be economically profitable and may offer competition for Azerbaijan, the main oil exporter in the South Caucasus.
However, Regnum reports Gobulev as saying, “Building an oil refinery in Armenia is interesting for Gazprom from the geopolitical point of view.”