Armenia must buy natural gas from Iran, former PM says
09.02.2016,
17:33
Armenia should buy natural gas from its immediate neighbor Iran, not from Russia, whose gas has to traverse across Georgia in order to reach Armenia, former Armenian prime minister Hrant Bagratyan, now an MP from the opposition Armenian National Congress (ANC), said today.
YEREVAN, February 9. /ARKA/. Armenia should buy natural gas from its immediate neighbor Iran, not from Russia, whose gas has to traverse across Georgia in order to reach Armenia, former Armenian prime minister Hrant Bagratyan, now an MP from the opposition Armenian National Congress (ANC), said today.
"The world price of gas, depending on its calorie value, is now about $85 per thousand cubic meters. If Armenia starts buying gas from Iran, Russia will have to reduce its gas price too. Business and friendship do not mix,' Bagratyan said.
In mid-January the Armenian government has asked authorities in Russia to lower the price of Russian natural gas delivered to Armenia. Russia’s Gazprom that supplies about 80 percent of Armenia’s gas, lowered the tariff from $190 to $165 per thousand cubic meters less than a year ago, however, the move did not translate into corresponding retail price reductions for Armenian households and corporate consumers. In 2015, Armenia imported 1.9 billion cubic meters of Russian gas, by 6.8% less than in 2014.
The gas pipeline between Armenia and Iran was commissioned in 2007. In return for Iranian gas Armenia ships electricity to Iran—3 kWh for one cubic meters of gas. In 2014 Armenia received 383 million cubic meters of Iranian gas at $189 for 1,000 cubic meters.
The Iranian gas is not sold to households or enterprises; it is converted into electricity by the Yerevan thermal power plant and much of it is shipped back to Iran. The pipeline’s maximum capacity is estimated at 2 billion cubic meters per year. -0-
"The world price of gas, depending on its calorie value, is now about $85 per thousand cubic meters. If Armenia starts buying gas from Iran, Russia will have to reduce its gas price too. Business and friendship do not mix,' Bagratyan said.
In mid-January the Armenian government has asked authorities in Russia to lower the price of Russian natural gas delivered to Armenia. Russia’s Gazprom that supplies about 80 percent of Armenia’s gas, lowered the tariff from $190 to $165 per thousand cubic meters less than a year ago, however, the move did not translate into corresponding retail price reductions for Armenian households and corporate consumers. In 2015, Armenia imported 1.9 billion cubic meters of Russian gas, by 6.8% less than in 2014.
The gas pipeline between Armenia and Iran was commissioned in 2007. In return for Iranian gas Armenia ships electricity to Iran—3 kWh for one cubic meters of gas. In 2014 Armenia received 383 million cubic meters of Iranian gas at $189 for 1,000 cubic meters.
The Iranian gas is not sold to households or enterprises; it is converted into electricity by the Yerevan thermal power plant and much of it is shipped back to Iran. The pipeline’s maximum capacity is estimated at 2 billion cubic meters per year. -0-
