Gazprom Armenia explains reasons for gas price revision for Armenian consumers

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Gazprom Armenia CJSC, Russian gas monopolist Gazprom’s subsidiary in Armenia, has asked Armeia’s Public Services Regulatory Commission (PSRC)  to lower tariffs for local consumers. In doing so, the company said it aims to prevent a further decline in gas consumption observed in the country in the recent years, create favorable conditions for the stabilization of natural gas market, promote gas consumption and expand the activities of the gas-consuming sector. Gazprom Armenia also took into account the following main factors;

1. Cut in natural gas transit costs through the territory of Georgia

The deadline of the of natural gas transit agreement with Armenia expires at the end of the year, and a new agreemenmt is to be signed between Gazprom Export Ltd, a subsidiary of Gazprom supplying natural gas to Armenia, and Georgian Gas Transportation Company. Taking into consideration this fact, the Government of Armenia initiated talks with Gazprom Armenia, Gazprom Export and the Georgian side over a possible further cut in the gas price.

2. Expected growth of consumption volumes as a result of reduction of gas tariffs for Armenian consumers
3. Implementation of an optimization program of Gazprom Armenia’s financial expenditures aimed at decreasing the financial obligations of the company and revision of investment programs.
4. Planned financing from the only shareholder of Gazprom Armenia – Gazprom – aimed at stabilizing the gas market in Armenia and boosting growth trends.