Iranian gas much more expensive than Russian, Armenian energy minister says
21.05.2013,
14:34
Iranian gas will cost much more to Armenia than the Russian one, even if the price for the latter goes up, Armenia’s minister of energy and natural resources Armen Movsisyan said.
YEREVAN, May 21. /ARKA/. Iranian gas will cost much more to Armenia than the Russian one, even if the price for the latter goes up, Armenia’s minister of energy and natural resources Armen Movsisyan said.
“Iran is not offering gas at cheaper prices than the Russians, as its gas is sold at regional prices. Iran is selling gas to Turkey and other countries at a much higher price – about 370 dollars”, Movsisyan told ARKA.
On May 14, ArmRosgasprom cjsc and TransGas limited applied to Armenia’s public services regulatory commission for review of the current gas price. The application suggests increasing the gas price for customers with monthly consumption of up to 10,000 cubic meters from the current 132,000 drams (including VAT) to 221,000 drams (including VAT).
Today Armenia is buying Russian gas at 180 dollars per 1,000 cubic meters; the consumer price is 132drams (about 32 cents) per cubic meter.
Movsisyan also said that today Armenia exchanges electricity with gas from Iran.
“We have no sufficient power capacity to import the entire required volume of gas through barter”, the minister stressed.
In 2004, Armenian government initiated construction of Iran-Armenia gas pipeline to extend the gas supplies and create a second gateway to the country. The pipeline was launched in 2007.
Iranian gas is to be converted to energy for exporting back to Iran, 3 kilowatt hours per cubic meter of natural gas.
Under the agreement, Iran is to supply 36 billion cubic meters of gas to Armenia over 20 years. The agreement has a provision for possible extension for another five years, with the volume of gas supplies to be increased to 47 billion cubic meters.–0--
