ARMENIA’S GAS IMPORTS UP NEARLY 3 PERCENT

United Press International
July 30 2008

Armenia increased its natural gas imports from Russia by nearly
3 percent in the first half of 2008, officials from the Armenian
division of Gazprom said.

ArmRosgazprom, the Armenian subsidiary, said Russian natural gas
exports rose 2.8 percent to 98.8 billion cubic feet, RIA Novosti
reported.

The Armenian news agency ARKA also reported Wednesday that overall
gas consumption grew by 6.2 percent during the same six-month period.

Around 7.6 billion cubic feet of that went to supply the energy sector,
the report said.

Armenia has a pricing arrangement with Russia through 2008 to purchase
natural gas at $110 per 1,000 cubic meters. Russian energy giant
Gazprom plans to increase that price to $165 beginning in 2009,
however.

Plans are under way between the two countries to establish a three-year
term for gas prices once the current $110 contract expires.