Armenia’s regulator to revise natural gas price

YEREVAN, September 29. / ARKA /. Head of Armenia’s Public Services Regulatory Commission (PSRC) said today the price of natural gas supplied to Armenia by Russia will be revised. Speaking at the parliament which is debating a government report on execution of its 2011 budget, PSRC head, Robert Nazarian, refused to elaborate ‘because of a set of still unresolved questions relating to gas pricing.’

He said the final price Armenia will have to pay for Russian gas when it reaches Armenian border across Georgia is not yet determined and the negotiations still continue.

"One thing is clear, the price will be revised. This question will be put to public debates once ArmRosGazprorm (ARG), Armenia’s Russian-controlled natural gas distributor, submits a relevant application,’ he said.

Earlier Armenia’s President Serzh Sargsyan said Russia and Armenia had reached mutual understanding over the price for Russia’s natural gas being exported to Armenia following a meeting with Russian President Vladimir Putin in Moscow on August 8. Sargsyan highlighted that the price should be set with taking into account the real market price multiplied or divided into the necessity of providing Armenia with natural gas at a price commeasurable with regional prices as well as the necessity to maintain Armenian economy’s effectiveness.

According to some speculations in media, natural gas price in Armenia may rise to $280 per 1,000 cubic meters from 1 October 2012, and $320 per 1,000 cubic meters from 1 January 2012. Currently, Armenia buys gas for $180 per 1,000 cubic meters from Gazprom.

ArmRosGazprom is the only company dealing with import and distribution of Russian natural gas coming to Armenia from Russia via Georgia. It was established in 1997. Russian Gazprom holds more than 80 percent in it, the rest is owned by Armenian government. -0-