Iran is also looking to export Natural Gas to Kuwait, most likely via Pipeline from South Pars. In March 2005, Iran and Kuwait signed a preliminary memorandum of understanding for natural gas sales, possibly 300 Mmcf/d for 25 years starting in 2007. The gas would be used for power generation and water desalination. Another possible market for Iranian gas is the UAE. In May 2004, Armenia and Iran agreed on a long-term deal, under which Iran will supply around 1.3 Tcf of natural gas to Armenia over 20 years (starting in 2007), in exchange for electricity supplies from Armenia. As part of the deal, the two countries are to build an 85-mile gas pipeline at a cost of more than $200 million (construction on the line began in late November 2004). Armenia also reportedly is looking to receive credit from Iran for building hydro plants on the Araks River in exchange for supplies of hydropower to Iran. Aside from natural gas exports, Iran also has discussed importing natural gas from Azerbaijan (a swap deal is set to kick in by the end of 2005), and already imports some natural gas from Turkmenistan. This natural gas is for use in Irans northern areas, far from the countrys main natural gas reserves in the south. In December 1997, Turkmenistan launched the $190 million Korpezhe-Kurt Kui pipeline to Iran, the first natural gas export pipeline in Central Asia to bypass Russia. According to terms of the 25-year contract between the two countries, Iran will take between 177 Bcf and 212 Bcf of natural gas from Turkmenistan annually, with 35 percent of Turkmen supplies allocated as payment for Irans contribution to building the pipeline.