GAZPROM ARMENIA’S INVESTMENTS TO TOTAL ABOUT AMD 11 BILLION IN 2015

YEREVAN, April 1. /ARKA/. The Public Services Regulatory Commission
of Armenia upheld today Gazprom Armenia CJSC’s investment program
for 2015 that costs AMD 10.99 billion (VAT excluded).

Abgar Budaghyan, chief of the Public Services Regulatory Commission’s
division in charge of monitoring licensed activities and investment
programs, speaking on the matter at today’s meeting of the commission,
said that AMD 1.3 billion will be invested in 2015 in reconstruction
and expansion of the Abovyan underground gas reservoir, in accordance
with this program.

In his words, on reconstruction of gas-conveying system and another
work aimed at restoration of the system will be spent 2.7 billion
and AMD 577 million respectively.

The company will also revamp its gas-distributing system, and this
is estimated to cost AMD 1.97 billion.

Another AMD 3.64 billion will be invested in different measures to
be taken to restore the system.

Besides, the company earmarks AMD 391.4 million to connect new gas
consumers to the network in 2015.

“It was initially planned to invest AMD 11.7 billion in 2015, but the
Public Services Regulatory Commission proposed to cut the expenses
that are not connected with license, such as spending on cars, which
shouldn’t impact the company’s consumer prices,” Budaghyan said.

Ashot Hakobyan, chief of the company’s technical unit, on his side,
said that the money mentioned in the company’s investment program will
be spent on repairing core gas pipelines, modernizing gas-measuring
stations, carrying out the work prompted by increase of the level of
Lake Sevan etc.

Giving its approval to the gas company’s investment program, the
commission obliged the company to submit also its investment program
for 2016-2018.

The commission also said that in 2013 the company spent AMD 395
million in addition to the amount mentioned in its investment program
on extra work.

In 2014, the company’s investments totaled AMD 9.27 billion. The
2014-2016 investment program that cost AMD 37.3 billion, of which
AMD 25 billion was planned to be spent on gas-conveying system and
AMD 12 billion on gas-distributing system.

Gazprom Armenia CJSC imports natural gas from Russia and distributes
in Armenia. In December 2013 Russia’s Gazprom sealed a contract with
Gazprom Armenia to export natural gas to Armenia in 2014-2018.

In accordance with its contractual obligations, Gazprom sends up to
2.5 billion cubic meters of natural gas to Armenia at prices depending
on price-making processes in Russia. ($1 – 471.13). –0—–