"Gazprom" and Yerevan agreed on the gas price for Armenia

Gazprom and Yerevan Agree on Gas Price for Armenia

Moscow. October 19th. INTERFAX.RU – The Armenian government has agreed with Gazprom on the price of natural gas supplied to the republic, Deputy Prime Minister of Armenia Mher Grigoryan said and noted the continuity of the negotiation process “We already have a consensus on the price of gas at the border and in Armenia. Since 2019 for a year we have been holding long and difficult negotiations, all issues have been discussed deeply enough and in a certain part have been agreed upon, “he said. Grigoryan called the main problem in the negotiations the situation with the 5th power unit of the Hrazdan TPP, which is owned by Gazprom and has been shut down since 2019. “The power unit was built in 2013. The station is now, unfortunately, not working. All investments of Gazprom in Armenia, based on the agreement of 2013, should have a 9% yield. Construction of the station is a serious investment, but it does not generate such income, and this issue remained on the agenda. If we manage to find a solution to the issue, then we will have a very stable situation in the price of gas both on the border and in Armenia. We wish the 5th power unit to become part of the energy system of Armenia, ” noted the Deputy Prime Minister. Earlier, Yerevan asked Gazprom to lower the gas price. The price of Russian gas for Armenia is set at $ 165 per 1,000 cubic meters. In May 2020, Prime Minister Nikol Pashinyan stated that Russia should demonstrate a different approach towards a strategic partner in determining gas prices for Armenia. Gazprom is the only gas supplier to Armenia; gas is sold to consumers. The operator of the gas transmission network of Armenia is CJSC Gazprom Armenia, a 100% subsidiary of PJSC Gazprom.

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