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ARMENIA SELLS 5TH UNIT FOR ENERGY SECURITY
United Press International
April 12 2006
YEREVAN, Armenia, April 12 (UPI) -- Armenia has sold a fifth unit from
the Razdan-5 thermal power plant in a bid to increase energy security,
Public Television of Armenia reported.
Speaking on Armenian television, following reports that new gas prices
would be in force as of Monday, Prime Minister Andranik Markaryan
denied that the sale of the energy-generating unit to Russia's Gazprom
was connected to the gas price.
"This is a successful deal.," he said. "We sold the unit for $250
million on the condition that $140 million will be invested into its
reconstruction and upgrading in two years' time. This will strengthen
our energy security.
"From this point of view, I consider this is a right decision and
the Armenian government has got an opportunity to use this money to
finance domestic gas consumers."
As of Monday, Armenian consumers pay 14 cents for 1 cubic meter of
gas, up from 13 cents. Commercial customers now pay $94.50 for 10,000
cubic meters. The price is still less than what European consumers pay.
The prime minister has said the government aims to keep gas and
electricity tariffs unchanged for the next three years.
Gazprom took control of Armenia's pipelines and the power station in
exchange for lower gas prices to Yerevan until 2009.
The price of gas was nearly doubled from $56 per 1,000 cu.m to $110
dollars per 1,000 cu.m.
In return, it took control of part of a 25-mile-long pipeline that
brings gas from Iran to Armenia and the Razdan-5 gas-fired plant.
United Press International
April 12 2006
YEREVAN, Armenia, April 12 (UPI) -- Armenia has sold a fifth unit from
the Razdan-5 thermal power plant in a bid to increase energy security,
Public Television of Armenia reported.
Speaking on Armenian television, following reports that new gas prices
would be in force as of Monday, Prime Minister Andranik Markaryan
denied that the sale of the energy-generating unit to Russia's Gazprom
was connected to the gas price.
"This is a successful deal.," he said. "We sold the unit for $250
million on the condition that $140 million will be invested into its
reconstruction and upgrading in two years' time. This will strengthen
our energy security.
"From this point of view, I consider this is a right decision and
the Armenian government has got an opportunity to use this money to
finance domestic gas consumers."
As of Monday, Armenian consumers pay 14 cents for 1 cubic meter of
gas, up from 13 cents. Commercial customers now pay $94.50 for 10,000
cubic meters. The price is still less than what European consumers pay.
The prime minister has said the government aims to keep gas and
electricity tariffs unchanged for the next three years.
Gazprom took control of Armenia's pipelines and the power station in
exchange for lower gas prices to Yerevan until 2009.
The price of gas was nearly doubled from $56 per 1,000 cu.m to $110
dollars per 1,000 cu.m.
In return, it took control of part of a 25-mile-long pipeline that
brings gas from Iran to Armenia and the Razdan-5 gas-fired plant.