Iran's gas plays an important role in supplying Armenia's energy until October 25, 2026. With the halt of Russian gas transfer from September 15 to 25, 2026, due to scheduled repairs on the North Caucasus – Transcaucasus pipeline, Armenian consumers have relied on domestic reserves and additional volumes of gas imported from Iran.
Background of Gas Supply to Armenia
Armenia mainly meets its natural gas needs from abroad. In 2025, the total gas imports of this country were about 2 billion and 705 million cubic meters, of which 2 billion and 229 million cubic meters were supplied by Russia and 475 million and 800 thousand cubic meters by Iran. In this structure, the temporary halt of the Russian route increases the importance of the southern route and Iran's ability to meet part of Armenia's needs.
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Energy Cooperation Model between Iran and Armenia
The energy cooperation between Tehran and Yerevan has long been established as a specific mechanism for gas and electricity exchange. In this model, Iran delivers natural gas to Armenia, and this country uses the received gas for electricity production and exports part of the generated electricity back to Iran. The exchange ratio in this mechanism is set at one cubic meter of gas for three kilowatt-hours of electricity.
In 2023, this contract was extended to continue cooperation and increase the volume of exchanges until 2030, and the possibility of increasing Iran's gas exports and Armenia's electricity exports was also considered. Thus, the increase in Iran's gas exports to Armenia is not limited to the needs arising from the repairs of the Russian line and is considered part of the economic relations between the two countries.
The completion of the third electricity transmission line between the two countries and the existing capacities for increasing exports are among the projects pursued in recent years. Nikol Pashinyan, the Prime Minister of Armenia, has also emphasized that the country's policy for diversifying gas sources will continue, and if the possibility of receiving gas from new sources arises, Yerevan will take advantage of it.
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