PSRC APPROVES ARMENIAN GAS OPERATOR’S INVESTMENT PROGRAM FOR 2010-2012
ARKA
May 21, 2010
YEREVAN
Armenia’s Public Services Regulatory Commission (PSRC) has approved
today the investment program of the national gas operator-ArmRosGazprom
(ARG)- for 2010-2012. The total program is worth 24.2 billion Drams,
of which 9.5 billion Drams will be invested this year.
Abgar Budaghian, head of a PSRC department dealing with investment
programs, said the company has curtailed its original program by
200 million Drams, that were to be spent on geophysical studies and
purchase of new emergency vehicles.
Ashot Hakobian, head of an ARG unit supervising investments, said the
company will invest 6.9 billion Drams in upgrading gas transportation
system , including 3 billion this year; 17.5 billion Drams will be
invested in upgrading the gas distribution network, including 6.5
billion Drams this year. Part of investments will be spent on expansion
and modernization of Abovian underground gas storage facility.
Earlier this year Armenia’s Public Services Regulatory Commission
(PSRC) endorsed the gas price increase requested by ArmRosGazprom,
a joint Russian-Armenian national gas distribution company.
ARG asked on 22 January to increase the price of natural gas from
the 96,000 Drams (US$252) to 136,000 dram per 1,000 cubic meters of
gas–a 41% increase. The PSRC negotiated only a small decrease of the
requested new price and agreed that ARG will charge households 132,000
Dram per 1,000 cubic meters, a mere 4,000 dram difference. The price
for industrial enterprises consuming more than 10,000 cubic meters of
gas a month the price rose by 13%, from $215 per one thousand cubic
meters, to $243.13.
ARG has a monopoly over the distribution of natural gas in Armenia
which is mainly imported from Russia via Georgia. The Armenian
government owns 20% of ARG, and the remaining 80% is owned by Russia’s
Gazprom. -0- ($1 – 385.85 Drams).