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  • "Iranian Gas Can Replace Russian But It Is Much More Expensive"

    "IRANIAN GAS CAN REPLACE RUSSIAN BUT IT IS MUCH MORE EXPENSIVE"

    http://www.noravank.am/eng/articles/detail.php?ELEMENT_ID=7119
    10.06.2013

    Iran as a natural gas supplier can become for Armenia full-fledged
    alternative to Russia. This was said in the interview to REGNUM IA
    correspondent by the Armenian expert, head of the Center for Political
    Studies of "Noravank" Foundation Sevak Sarukhanyan. According to him,
    if the authorities of Armenia decide to buy gas from their neighbor
    Islamic republic instead of Russia, technically it is possible.

    "The Iranian gas reserves are estimated approximately at 820 billion
    m3 and this state needs new markets for the export of its gas. Selling
    of the energy carriers to the international markets is one of the
    priorities of Tehran. There are also no problems in the technical
    aspect - in case of some investments the volume of the supplied gas
    can increase up to 2.5 billion m3 annually, meanwhile our country
    consumes about 1.8-1.9 billion m3, and the record for the last two
    years has been 2 billion m3. When they say that during the
    construction of the Iran-Armenia gas-pipeline a smaller diameter pipe
    was used they mean a possibility of once discussed transformation of
    Armenia into a gas transition country. But this is absurdity", - said
    the expert, saying that there simply no place where the Iranian gas
    can be transitioned through Armenia.

    As for the possible price of the Iranian gas for Armenia, Sevak
    Sarukhanyan mentioned that in Iran they needed to lower the export
    tariffs due to the difficult social and economic situation, which was
    formed in consequence of the international sanctions. "Today Armenia
    does not buy Iranian gas for money. "Gas for electricity" barter
    swapping is obtained. Iran is receiving 3kWh electricity for one cubic
    meter of gas, which is equivalent to approximately $230. If we buy gas
    for the domestic consumption for money the prices will be different.

    They were particularly mentioned by the Minister of Energy Armen
    Movsisyan - $335 for one thousand cubic meters", - said the head of
    the Center for Political Studies of "Noravank" Foundation.

    Sevak Sarukhanyan also touched on a topic of Iran's gas policy in
    general saying that currently this country has been ceding its
    positions on the regional market. "For example Turkey bought Iranian
    gas for $500 for one thousand m3, bur recently their contract was
    revised in favour of lower prices. Iran was obliged to do this because
    it tends to increase the export of the energy carriers. But the
    supplies of the Iranian gas to Turkey will be shrinking and there are
    two objective reasons for that - growth of the Azerbaijani gas
    consumption in Turkey and plans of building Israel-Turkey gas
    pipeline. As for the later it is planned to supply gas from the
    recently opened big Israeli "Tamar" gas field. Correspondingly there
    will be less and less gas in the Tabriz-Erzurum gas pipeline. On the
    other hand if the economic sanctions in regard to Iran are
    reconsidered one day the gas price for Turkey will be revised again",
    - said Sevak Sarukhanyan.

    Let us remind you that "Armrusgasprom" Company approached with a
    proposal to the Public Services Regulatory Commission to revise
    current tariffs for the natural gas sold in the republic.

    "Armrusgasprom" offers to raise the tariffs for small consumers (up to
    10 thousand m3 per month) from 132 thousand drams (about $318) to 221
    thousand drams (about $532) for 1000m3; and for big consumers up to
    $392. Because of the tariff revision for gas the government of Armenia
    will subsidize the price for gas on 30%.

    Previously the prime-minister of Armenia Tigran Sargsyan and Minister
    of Energy and Natural Resources Armen Movsisyan stated repeatedly that
    the Iranian gas cannot be an alternative to the Russian because of its
    high price. According to Movsisyan Iran offers Armenia gas at the
    price not lower than $335 for 1000m3 and this number will increase as
    in case with Turkey and in that case it will be more profitable to buy
    Russian gas. "The flow efficiency of the Iranian gas pipeline can be
    increased up to 3 billion m3 annually, and Armenia consumes 1.7
    billion m3. It means that the Iranian gas could have become the
    alternative to the Russian but for its high price", - said the
    Minister.

    http://regnum.ru

    Return
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    From: Baghdasarian
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