ARG TO EXPAND ABOVIAN UNDERGROUND GAS STORAGE FACILITY

Armenpress
Feb 20 2007

YEREVAN, FEBRUARY 20, ARMENPRESS: The joint Russian-Armenian gas
operator-ArmRosGazProm (ARG) has pledged to invest 5.1 billion drams
in 2007-2009 to upgrade and expand an underground gas storage facility
located near the town of Abovian.

The operator plans to build new storage facilities which will be
able to store over 150 million cubic meters of gas. Overall Armenia
presently has about 240 million cubic meters of underground natural
gas storage capacity that can be used for seasonal adjustment of
natural gas flows.

The reservoir in Abovian is the largest. During the Soviet era it
could store up to about 180 million cubic meters of natural gas. Now,
however, the facility can hold no more than about 110 million cubic
meters. Refurbishment of this facility is of great strategic importance
from a gas supply management consideration. The Abovian underground
gas storage facility could also be useful in transiting gas from
central Asia through Armenia to other countries.