TEHRAN, March 19 (Xinhua) -- Iranian President Mahmoud Ahmadinejad and his Armenian counterpart Robert Kocharyan on Monday inaugurated a gas pipeline intended to transfer Iran's gas to its northern neighbor, the official IRNA news agency reported.

    The ceremony took place in the Armenian settlement of Agarak on the border between the two countries, IRNA said.

    The report said that under a 20-year contract, Armenia is projected to receive 36 billion cubic meters of gas through the141-km (89-mile) pipeline, which includes 40 km in the Armenian territory to connect gas transportation systems of the two countries.

    Armenia will pay for the gas with electricity it produces at a nuclear power plant, it was reported.

    Kocharyan said that he regarded completion of the gas pipeline project as the new proof of friendship between Tehran and Yerevan.

    The two presidents also signed a protocol on broadening cooperation and reaffirmed their intention to broaden bilateral contacts.