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Global Insight
May 13, 2011
ArmRosGazprom Plans Expansion of Underground Gas Storage Facility in Armenia
BYLINE: Andrew Neff
ArmRosGazprom (ARG), the monopoly gas importer and distributor in
Armenia, said it plans to increase capacity on the country's Abovian
underground gas storage facility by the end of 2013. In an interview
with theVoice of Armenianewspaper, ARG chief Vardan Khachatryan said
that the company will raise capacity on the Abovian facility to
170-180 mmcm, up from the current capacity of 140 mmcm. Russia's
Gazprom owns 80% of ARG, while the Armenian government holds the
remaining 20%.
Significance:The increase in storage capacity at the Abovian
underground facility--the only one of its kind in Armenia--is geared
to improve the country's energy security and ensure that ARG can
supply customer needs during times of seasonal demand fluctuation. An
underlying, yet unstated reason for raising the Abovian storage unit's
capacity is concern over the stability of Armenia's gas imports from
Russia, which must cross Georgian territory before entering Armenia.
The ongoing tension between Russia and Georgia, together with the fact
that Georgia no longer relies on Russian gas imports (and thus is not
inclined to spend money on maintenance of the transit pipeline), has
increased fears of more regular disruptions to Armenia's gas supplies
from Russia (seeCIS - Armenia: 11 May 2010:). Georgia itself has
turned its focus to gasifying its own regions, with the government
this week commissioning a new "East-West" gas pipeline that connects
gas supplies to end-users in Poti, Senaki and other parts of
Samegrelo. The USD115-million pipeline to gasify the regions was
financed with United States government funds.
From: Emil Lazarian | Ararat NewsPress
May 13, 2011
ArmRosGazprom Plans Expansion of Underground Gas Storage Facility in Armenia
BYLINE: Andrew Neff
ArmRosGazprom (ARG), the monopoly gas importer and distributor in
Armenia, said it plans to increase capacity on the country's Abovian
underground gas storage facility by the end of 2013. In an interview
with theVoice of Armenianewspaper, ARG chief Vardan Khachatryan said
that the company will raise capacity on the Abovian facility to
170-180 mmcm, up from the current capacity of 140 mmcm. Russia's
Gazprom owns 80% of ARG, while the Armenian government holds the
remaining 20%.
Significance:The increase in storage capacity at the Abovian
underground facility--the only one of its kind in Armenia--is geared
to improve the country's energy security and ensure that ARG can
supply customer needs during times of seasonal demand fluctuation. An
underlying, yet unstated reason for raising the Abovian storage unit's
capacity is concern over the stability of Armenia's gas imports from
Russia, which must cross Georgian territory before entering Armenia.
The ongoing tension between Russia and Georgia, together with the fact
that Georgia no longer relies on Russian gas imports (and thus is not
inclined to spend money on maintenance of the transit pipeline), has
increased fears of more regular disruptions to Armenia's gas supplies
from Russia (seeCIS - Armenia: 11 May 2010:). Georgia itself has
turned its focus to gasifying its own regions, with the government
this week commissioning a new "East-West" gas pipeline that connects
gas supplies to end-users in Poti, Senaki and other parts of
Samegrelo. The USD115-million pipeline to gasify the regions was
financed with United States government funds.
From: Emil Lazarian | Ararat NewsPress