Gazprom and Armenia to consolidate every aspect of bilateral cooperation
RELEASE
Release
The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company’s Management Committee and Armen Movsisyan, Armenian Energy and Natural Resources Minister.
The meeting participants addressed the issues of the bilateral cooperation in the gas sector including the progress with the agreement on Gazprom’s participation in Armenian gas-fired power generation projects. Special consideration was given to the development prospects for the ArmRosGazprom joint venture.
Moreover, the parties expressed a unanimous opinion that bringing onstream the fifth power generating unit at the Hrazdan Thermal Power Plant enabled to meet the growing power demand in Armenia and neighboring countries.
The meeting paid attention to pricing of Russian gas and ramping up its supplies to Armenia between 2012 and 2013.
Background
Armenia does not produce natural gas and the country's power generation sector is totally reliant on gas imports.
In 2011 Gazprom provided Armenian consumers with some 1.6 billion cubic meters of natural gas.
ArmRosGazprom was incorporated in December 1997. At present, Gazprom holds 80 per cent and the Republic of Armenia – 20 per cent in the company. ArmRosGazprom is focused on natural gas supplies to the domestic Armenian market. In addition, the company transports, stores, distributes and sells natural gas as well as upgrades and expands the gas transmission system and underground gas storages in Armenia.
Pursuant to the Agreement on Gazprom’s participation in gas and power projects in Armenia signed in 2006, ArmRosGazprom acquired the fifth power generating unit at the Hrazdan Thermal Power Plant and completed its construction and upgrade in late 2011.
In January 2012 the fifth power generating unit at the Hrazdan Thermal Power Plant was brought into pilot operation. After the state-of-the-art gas turbines were installed, the total capacity of the Hrazdan Thermal Power Plant reached 480 MW. The fifth power generating unit is expected to produce up to 1.8 billion kW of electricity in 2012.