ArmInfo. After almost two years of negotiations, Armenia and Russia have agreed on a gas price for the next 10 years. On December 23, the Armenian government approved the proposal to sign a protocol on amendments to the "Agreement between the Government of the Russian Federation and the Government of the Republic of Armenia on the terms of purchase and sale of shares and further activities of ArmRosgazprom closed joint stock company dated December 2, 2013 ".
The document, which provides for the preservation of gas prices at the border and new obligations for the RA, was adopted without a report or discussion.
According to the explanation to the document, Armenia undertakes to pay annually an amount of US $ 31.79 million to Gazprom Armenia CJSC as security for the annual payment for the capacity of the Hrazdan 5th power unit (owned by Gazprom Armenia CJSC). "The underload of the 5th Hrazdan power unit was largely caused by the lack of trade agreements, as well as the delay in the construction of the Iran- Armenia 400 kV power transmission line. Due to the incomplete operation of the power unit, the investments of Gazprom PJSC were not repaid, moreover, the credit liabilities increased, reaching about 100 million dollars," the explanation to the document reads.
It is noted that the fulfillment of the conditions established by the protocol will facilitate the restart of the 5th power unit in Hrazdan, and will also allow maintaining a stable price for gas supplied to Armenia within ten years from 165 to 1000 cubic meters, with a calculated heat of combustion of 7900 kcal / m3. In addition, the Protocol provides for the settlement of issues related to the repayment of the debt of "Yerevan TPP" to Gazprom Armenia CJSC in the amount of about $ 30 million.
On December 20, the Public Services Regulatory Commission (PSRC) reported that the debt burden of Armenian generating energy companies is pushing the increase in electricity tariffs, in particular, an increase in the basic tariff by 5.5 drams per kWh, on average - 4.7 drams per kWh.
It was noted that as a result of the analysis of various factors, it turned out that under the current tariffs, the financial gap in the country's power supply system in the new tariff year (from February 1, 2022) will amount to 23.8 billion drams. The main reason for the negative financial balance in the power system is the high debt burden of power generating and distribution companies. This concerns the financial obligations of Gazprom Armenia CJSC to the Hrazdan-5 station (USD 31.79 million annually) under an agreement signed between the governments of the Republic of Armenia and the Russian Federation. According to the regulator, it is within the framework of these agreements that Armenia can claim a stable price for Russian gas supplies over the next 10 years at a price of $ 165 per 1,000 cubic meters. It was also noted that the process of modernization of the Armenian Nuclear Power Plant CJSC significantly increased the station's expenditure on repayment and maintenance of soft loans received under the guarantee of the Government of the Republic of Armenia.
Gazprom Armenia CJSC is a 100% subsidiary of Gazprom PJSC , ensuring the supply and sale of natural gas in the domestic market of the republic. As part of the gas transmission system (GTS), 1,685 km of main gas pipelines and gas branch pipelines are serviced. The gas distribution system currently serves 14,600 km of high, medium and low pressure gas pipelines and auxiliary facilities.
