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| Iranian gas to completely cover the Armenia’s gas demand, minister says |
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YEREVAN (ARKA) — Iran-Armenia pipeline could completely cover the domestic gas demand, as its capacity is 2.2 billion cubic meters a year, while Armenian domestic demand is just 1.7 billion cubic meters, said Armen Movsisyan, Energy and Natural Resources Minister.
“At present, Iran sells its natural gas to Turkey at $335 per 1,000 cubic meters, but starting with the next year the price will rise to $440. As Turkey consumes huge volume of gas, the sides can kick off talks, and we will be offered the price of not less than $370,” Movsisyan said at the parliament debates over the gas price.
He also added in case some additional compressor stations were constructed, the pipeline capacity might increase to 3 billion cubic meters.
In 2004, the Armenian government initiated construction of Iran-Armenia gas pipeline to expand its gas import network. Armenia started receiving the Iranian gas through the pipeline on May 15, 2009. The gas delivery was agreed upon “Gas in exchange for electricity” principle.
According to the Public Services Regulatory Commission, Armenia imported over 2.4 billion cubic meters of gas in 2012, of them over 1.9 billion from Russia, and 488.3 million from Iran.
On May 14, Armenia-based ArmRosgazprom CJSC and Transgaz Ltd. requested Armenia’s Public Services Regulatory Commission to re-evaluate the current natural gas tariff.
At present, the monthly tariff for consumers is 132 drams (including VAT) per 1,000 cubic meters for those who consumer up to 10,000 cubic meters per month.
The request submitted by ArmRosgazprom states that the company, in accordance with the agreement with Gazprom, has been paying $270 per 1,000 cubic meters at the border since 1 April. The minister, however, says Armenia is and will be paying $180 until the talks over the tariffs are finished.
ArmRosgazprom CJSC, established in 1997, enjoys the sole right for importing and distributing Russian natural gas in Armenia.
Russia conveys its gas to Armenia through Georgia.
The company’s shareholders are Russia’s Gazprom and the Armenian government.
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