Iran announced on Sunday that it is considering the possibility of increasing gas exports to Armenia by five folds.

Alireza Kamali, the managing director of the National Iranian Gas Export Company (NIGEC), has been quoted by the media as saying that the rise in gas exports to Armenia will be in line with a related scheme to purchase of�electricity from the country.

"On the basis of�a joint agreement, the possibility exists to�increase the amount of�gas exports by�five times," Mehr news agency has quoted Kameli in a report that was also carried by the Russian Sputnik news agency.

Iran and Armenia signed a deal in 2004 based on which the Iranian gas is used by Armenian power plants to generate electricity and in return, Armenia exports the electricity to Iran.

Iran exports nearly one million cubic meters of�natural gas to�Armenia per daily, the official added. Officials in Tehran had earlier said the volume can increase to as high as six million cubic meters per day.

Last August, Iran and Armenia signed a new contract for the construction of the third power transmission line that will enable the two countries to exchange more electricity.

The new power line � which is expected to be constructed in 18 months � is expected to increase the volume of electricity exports from Armenia to Iran by 700 megawatts to reach a total of 1,000 megawatts.

On a related front, officials in Tehran announced in October that Armenia has already started work over a new 400-kilovolt power transmission line in addition to a combined-cycle power plant and has asked Iran to supply the natural gas that it needs to get the plant going.

By Press TV