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Ministry of Energy: possible changes of gas tariffs will be defined by the end of February

15.02.2011, 22:02
Negotiations of Armenia with Russian “Gazprom” regarding gas tariffs will finish by the end of February, said Armenian Minister of Energy and Natural Resources Armen Movsisyan in the meeting on Tuesday.
YEREVAN, February 15. /ARKA/. Negotiations of Armenia with Russian “Gazprom” regarding gas tariffs will finish by the end of February, said Armenian Minister of Energy and Natural Resources Armen Movsisyan in the meeting on Tuesday.

In September 2010 “Gazprom” announced about market pricing with Belarus, Moldova and Armenia. Gas price increase is expected in this region in 2011.

Government of Armenia and Russia negotiate on this issue. Representatives of the ruling political party announce that they will do everything for having minimum difficulties in possible gas price increase.

Negotiations with “Gazprom” are conducted in friendly atmosphere.

“They understand our problems and we understand them as they work not only with Armenia. As there is a tendency of price increase of energy carriers and Armenia lacks own energy carriers except rather limited hydro-potential which can satisfy only 20-25% of internal demand, import problem is important for the country. Price increase will have an impact on Armenia. Price increase of energy carriers in Armenia will depend on world gas prices”, he said.

Armenia has certain appointments with Russia on changing gas prices in a certain period of time. According to the agreement on deliveries of Russian gas to Armenia from April 1, 2009 gas price for Armenia on the border cost $154 for 1 thousand cubic meters VAT included instead of earlier operating $110. From April 1, 2010 gas price on the border was $180 instead of earlier envisaged $200 for 1 thousand cubic meters.

By the decision of Public Services Regulatory Commission (PSRC) from April 1, 2010 payment for the consumed gas for one cubic meter increased to 37.5% to 132 drams (0.34 dollars) versus the operating 96 drams (0.25 dollars). For the enterprises using more than 10 thousand cubic meters of gas monthly, the tariff increased by 13% to 243.13 dollars for each thousand cubic meters of the consumed gas instead of former 215.

CJSC “ArmRosgasprom” is a monopolist in the internal market of Armenia. Gas enters Armenia by transit through Georgia. The company was established in 1997. The share of Open JSC “Gasprom” is 80% in the charter capital of the company, the share of the Government of Armenia is 20%. -0-