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Georgia Landslide Disrupts Russian Supplies To Armenia

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  • Georgia Landslide Disrupts Russian Supplies To Armenia

    GEORGIA LANDSLIDE DISRUPTS RUSSIAN SUPPLIES TO ARMENIA

    Interfax, Russia
    Aug 21 2014

    By Staff reporter
    Posted 21 August 2014 12:17 GMT

    A landslide in Georgia on Wednesday has cut gas supplies to Armenia,
    but Gazprom Armenia has stressed it will not disrupt the volume it
    delivers to customers.

    The gas supply through the North-South trunk was cut off at 11.45pm
    (GMT: 7.45pm) on Thursday following a landslide in the Darial Gorge
    near Georgia's border with Russia, which damaged a section of the
    pipeline that delivers Russian gas to Armenia, sources at the Armenian
    Emergency Services Ministry and Georgian Gas Transportation Co. told
    Interfax.

    The Georgian Gas Transportation Co. is evaluating the damage and
    plans to begin repair work soon, the company said.

    However, deliveries to Armenian customers will continue, the Gazprom
    subsidiary told Interfax. "Gazprom Armenia will provide full gas
    supplies to consumers in Armenia, without restrictions, from internal
    reserves."

    Armenia, which does not produce any of its own gas, received 1.96
    billion cubic metres from Gazprom in 2013.

    The exporter enhanced its presence in the country's gas and electricity
    sector late last year when it bought the remaining 20% stake in gas
    distributor ArmRosgazprom from the Armenian government, becoming the
    full owner.

    Amid heightened tensions with Ukraine in December, Russia also
    offered to annul the 35% duty charged to Armenia for petroleum product
    imports. The agreement set the gas price at $5.35/MMBtu - compared
    with around $10.5/MMBtu charged to Ukraine at the time (see Russia
    and Gazprom widen footprint in Armenia, 3 December 2013).

    Georgia also receives 10% of the gas that crosses the country en
    route to Armenia.

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