ARMENIA HOPES TO SIGN 3-YEAR GAS PRICE DEAL WITH RUSSIA IN SEPTEMBER

Interfax News Service
July 30 2008
Russia

Armenia and Russia will sign a natural gas price agreement for the
next three years in September 2008, Armenian Energy and Natural
Resources Minister Armen Movsisian told journalists on Wednesday.

So far the parties are in talks and the price has not been finally
set, he said. According to an agreement with Gazprom, Armenia will
be receiving gas at a price of $110 per 1,000 cubic meters until
December 31, 2008, the minister recalled.

Gazprom (RTS: GAZP) suggests raising the price up to $165 per 1,000
cubic meters in 2009.

The Russian gas giant stated earlier that the gas price for Armenia
will be increased gradually, and the switch to the European price
will be completed, as in Russia, in 2011.

Armenia does not have its own natural gas production, the country’s
energy sector is fully dependent on gas imports. Gazprom is the only
gas supplier to this country. Gas is being delivered by Gazpromexport
(100%-owned by Gazprom) to the Armenian border; at the border gas is
purchased by Armrosgazprom (in which Gazprom owns 72.16%). In 2007,
Russia supplied 2.05 billion cubic meters of natural gas to Armenia.

From: Emil Lazarian | Ararat NewsPress