GASPROM AND ARMENIA AGREE TO MAKE MID-TERM CONTRACT FOR GAS SUPPLY AND CHANGEOVER TO EUROPEAN GAS TARIFFS IN 2011
arminfo
2008-05-20 13:46:00
ArmInfo. Chairman of Gazprom OJSC Board Aleksey Miller, President of
the Republic of Armenia Serzh Sargsyan and Prime Minister of Armenia
Tigran Sargsyan agreed to make a new contract for gas supply. Gazprom
press-service reports the parties agreed that it will be a mid-term
contract with a price formula i.e. a changeover to the European
price level is expected in 2011 (like in Russia). ‘Gas price will be
changed gradually given the high level of strategic cooperation and
strengthening Gazprom’s position in Armenia due to the increase of
its stake in ArmRusgasprom Company’, the source reports.
Before January 2009 Russian gas will be supplied to Armenia for
110 dollars per 1,000 cubic meters. The parties stressed that
ArmRusgasprom JV is extending its activity and preparing to launch
IPO. Earlier Head of ArmRusgasprom Karen Karapetyan said that the
company is working on a preliminary IPO and conducts international
audit. In the spring of 2006 Gazprom and the Government of Armenia
signed a 25- year contract to determine the strategic principles of
cooperation in gas and energy projects in the territory of Armenia. The
contract implies acquisition of the fifth power unit of Hrazdan TPP
(Hrazdan-5) from the Government of Armenia and the country’s gas
facilities. The Russian holding pledged to complete the construction
of the 5th power unit within 2 years and to build a gas turbine with
up to 140 MW capacity hereby increasing the general capacity to 440 MW.
After the investments, Gazprom will have majority stake in
ArmRusgasprom CJSC. The above gas price (110 dollars per 1.000 cubic
meters before January 2009) was established in exchange for the sale
of the assets to Gazprom.
Starting from January 1 2009 up to 2011, the gas price for Armenia will
make up 165 dollars per 1,000 cubic meters. Armenia has no own natural
gas resources. Gazprom resumed gas supply to Armenia in June 2003 and
it is the only gas supplier to Armenia. Gasprom Export LTD (100pct
subsidiary of Gazprom) is engaged in gas supply up to the Armenian
boundary. Gasprom holds 67.94pct stake in ArmRusgasprom at present.