RUSSIAN GAS WILL COST ARMENIA 180$ FROM 2010
Hasmik Dilanyan

"Radiolur"
20.10.2009 16:26

Armenia’s natural gas company said Russia’s Gazprom is set to decrease
the price it charges for gas supplied to Armenia. Karen Karapetyan,
the Chief Executive Director of the Russian-Armenian joint venture
ArmRosGazProm (ARG) said today the price for Armenia will be $180 as
of April 2010, down from the originally planned $200.

The price of Russian gas for Armenia rose from $110 to $154 per
one thousand cubic meters in April and was expected to rise to
$200. The new price for Armenia, VAT not included, will be $169.5,
Karen Karapetyan said.

Reports in some Russian newspapers claimed that Russia will reduce
the price in return for being granted the right to build a new reactor
for Armenian nuclear power plant. However, Karen Karapetyan rejected
these reports, saying construction of a new reactor has nothing to
do with gas price.

Gazprom is the main supplier of gas to Armenian households and
provides about one-third of Armenia’s electricity. According to
Karen Karapetyan, "intensive negotiations are still under way with
the Russian side over the new price," but he added that ARG will
build its next year strategy based on $180 price. According to him,
this is the best price that Gazprom can offer Armenia.

"We need to shift gradually to building our relations on economic
categories," he said, adding that 12 years is quite a long time
period for Armenia to get prepared for shifting to market relations
in dealing with Russian counterparts. Despite this, he said, even
under market conditions Armenia will have a privileged price next year.

The fifth energy bloc of Hrazdan-5 thermal power plant will be launched
in July 2010, ArmRosGazProm Chief Executive Director Karen Karapetyan
told journalists. "That’s a unique station, with a new 180 MGWT modern
power bloc being built next to the one inherited from Soviet times,"
he said, adding that the two blocs will be operated jointly as a new
know-how project not implemented by anyone so far.

Despite financial crisis, ArmRosGazProm CJSC continues modernization
of the 5th energy bloc of Hrazdan-5 thermal power plant. Within the
framework of the project the plant has signed relevant contracts with
49 local and 109 foreign organizations.

Construction of 5th energy bloc is due to be completed in 2010. Upon
launching production, company intends to start energy export.