Armenian Prime Minister Andranika Markaryan, Energy Minister Armen Movsisian and other ministers, officials of Oil Ministry, Head of the Presidential office Artashes Tumanian, Iranian Energy Minister Habibollah Bitaraf and Ambassador to Yerevan Alireza Haqiqian were present at the inaugural ceremony.

Iran and Armenia on May 13 signed an agreement to construct a 41-km gas pipeline between the Armenian cities of Megri and Kajaran.

The 41-km pipeline is expected to cost 210-220 million dollars.

Addressing the inaugural ceremony, Markaryan said that November 30 will be recorded in the history of Iran-Armenia ties.

He said that implementation of this project would have an important effect on the whole economy of Armenia.

Bitaraf, also speaking on the occasion, said that launching of the project was a token of the two countries' determination to bolster bilateral cooperation.

The Iranian ambassador to Yerevan termed the construction of new pipeline as a strategic measures which would lead to development of the country and reinvigoration of the region.

The first gas consignment is to be transferred to Armenia in January 2007.