INVESTMENT PROGRAM OF ARMROSGAZPROM CJSC FOR 2004 FOR 6.76 BLN AMD APPROVED

YEREVAN, JULY 23. ARMINFO. The Commission for Regulation of Public
Service of Armenia approved today an investment program of
ArmRosgazprom CJSC for 2004. The program costs 6.76 bln AMD (VAT
exclusive).

Presenting the program, Chairman of the Board, General Director of
ArmRosgazprom CJSC Karen Karapetyan said that the main share of the
investments (5.1 bln AMD) is provided for extension of gas
distribution network and connection of new users. 462.4 mln AMD will
be directed to repair and modernization of the gas distribution
network and to reduction of losses in the network (350 mln AMD). 372.8
mln AMD will be allocated for repair and technical equipment of gas
transmission network and other expenses. Natural gas supply volumes
are planned to be increased by 100 mln cubic meters in 2004 as
compared with the indicators of 2003, and the loss will be reduced by
11 mln cubic meters. By July 1. 2004, 670 mln cubic meters of natural
gas were supplied to Armenia, the indicator will be increased to 1.3
bln cubic meters by the end of the year. At present, ArmRosgazprom
CJSC has 212,000 real and 400 potential gas users. By July 1, 2004,
under the investment program, 2 bln AMD were used exclusively from the
company’s incomes.

No rise in the gas tariff is planned for this and the next year. In
Dec, 2004, an investment program for 2005-2007 of the company is to be
submitted to the Commission for Regulation of Public
Service. According to preliminary estimations, the program will total
34.5 bln AMD, VAT exclusive.

The ArmRosgazprom CJSC was founded in 1998. By 45% of the company’s
shares belong to the Armenian Government and Gazprom OJSC, 10% to the
ITERA International Energy Corporation. It is for already one year,
Gazprom is the monopolist in the sphere of gas supply to Armenia.

From: Emil Lazarian | Ararat NewsPress