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GAZPROM INCREASING ITS STAKE IN ARMROSGAZPROM TO 100 PER CENT
States News Service
January 16, 2014 Thursday
MOSCOW, Russia
The following information was released by OAO Gazprom:
Alexey Miller, Chairman of the Gazprom Management Committee and Armen
Movsisyan, Minister of Energy and Natural Resources of the Republic of
Armenia signed today in the Gazprom headquarters a Sales and Purchase
Agreement for 20 per cent of ArmRosgazprom's shares. The document was
signed in furtherance of the intergovernmental Agreement between the
Russian Federation and the Republic of Armenia.
In center - Armen Movsisyan and Alexey Miller
Enlarged photo (JPG, 3 MB)
As a result of the deal, Gazprom's ownership stake in ArmRosgazprom was
increased to 100 per cent. The company will be named Gazprom Armenia.
Armen Movsisyan and Alexey Miller
Enlarged photo (JPG, 1 MB)
"This deal fully complies with the spirit of strategic cooperation
between Russia and Armenia. Gazprom has been successfully cooperating
with Armenian partners in many areas and for many years. We have
implemented large-scale projects both in main gas transportation and
power generation. But above all, Armenia has achieved a major socially
important result - we reached the gasification level of 96 per cent.
Another key area of our cooperation is the NGV sector. Armenia has
even more CNG filling stations than Russia. We all have something to
learn from our Armenian colleagues.
"Gazprom has always been and will remain a reliable partner for
Armenia," said Alexey Miller.
Background
Armenia does not produce natural gas and the country's power
generation sector is almost fully dependent on gas imports. Gazprom
Export delivers gas to the border with Armenia where it is purchased
by ArmRosgazprom. In 2013 Gazprom Group supplied Armenia with 1.96
billion of natural gas.
Incorporated in December 1997, ArmRosgazprom is focused on natural gas
supplies to the Armenian market. In addition, the company transports,
stores, distributes and sells natural gas as well as upgrades and
expands gas transmission and underground gas storage systems in the
Republic of Armenia.
In March 2006 Gazprom and the Government of the Republic of Armenia
signed a 25-year Agreement on Gazprom's participation in gas and
power projects in the Republic of Armenia. The document provides
for an increase of Gazprom's ownership stake in ArmRosgazprom via an
additional share issue. As a result, Gazprom acquired an 80 per cent
stake in ArmRosgazprom. The funds received from the share issue were
allocated for purchasing and constructing the fifth power unit at
the Hrazdan Thermal Power Plant (TPP) as well as gas infrastructure
facilities in Armenia.
In December 2013 the fifth power unit (480 MW) at the Hrazdan TPP
was brought into the commercial operation. The said unit operated
in a pilot mode from January 2012 and produced over 2 billion kWh
of electricity.
In the same month the Russian Energy Ministry and the Armenian Energy
and Natural Resources Ministry signed an intergovernmental Sales and
Purchase Agreement for ArmRosgazprom's shares and the company's future
activities. The document provides for increasing Gazprom's stake
in ArmRosgazprom from 80 to 100 per cent. Gazprom and ArmRosgazprom
signed a contract for Russian gas supply to Armenia from 2014 to 2018.
According to the document, Gazprom will annually provide Armenia with
2.5 billion cubic meters of gas and its price will be determined
by a price formula linked to the pricing mechanism for natural gas
in Russia.
States News Service
January 16, 2014 Thursday
MOSCOW, Russia
The following information was released by OAO Gazprom:
Alexey Miller, Chairman of the Gazprom Management Committee and Armen
Movsisyan, Minister of Energy and Natural Resources of the Republic of
Armenia signed today in the Gazprom headquarters a Sales and Purchase
Agreement for 20 per cent of ArmRosgazprom's shares. The document was
signed in furtherance of the intergovernmental Agreement between the
Russian Federation and the Republic of Armenia.
In center - Armen Movsisyan and Alexey Miller
Enlarged photo (JPG, 3 MB)
As a result of the deal, Gazprom's ownership stake in ArmRosgazprom was
increased to 100 per cent. The company will be named Gazprom Armenia.
Armen Movsisyan and Alexey Miller
Enlarged photo (JPG, 1 MB)
"This deal fully complies with the spirit of strategic cooperation
between Russia and Armenia. Gazprom has been successfully cooperating
with Armenian partners in many areas and for many years. We have
implemented large-scale projects both in main gas transportation and
power generation. But above all, Armenia has achieved a major socially
important result - we reached the gasification level of 96 per cent.
Another key area of our cooperation is the NGV sector. Armenia has
even more CNG filling stations than Russia. We all have something to
learn from our Armenian colleagues.
"Gazprom has always been and will remain a reliable partner for
Armenia," said Alexey Miller.
Background
Armenia does not produce natural gas and the country's power
generation sector is almost fully dependent on gas imports. Gazprom
Export delivers gas to the border with Armenia where it is purchased
by ArmRosgazprom. In 2013 Gazprom Group supplied Armenia with 1.96
billion of natural gas.
Incorporated in December 1997, ArmRosgazprom is focused on natural gas
supplies to the Armenian market. In addition, the company transports,
stores, distributes and sells natural gas as well as upgrades and
expands gas transmission and underground gas storage systems in the
Republic of Armenia.
In March 2006 Gazprom and the Government of the Republic of Armenia
signed a 25-year Agreement on Gazprom's participation in gas and
power projects in the Republic of Armenia. The document provides
for an increase of Gazprom's ownership stake in ArmRosgazprom via an
additional share issue. As a result, Gazprom acquired an 80 per cent
stake in ArmRosgazprom. The funds received from the share issue were
allocated for purchasing and constructing the fifth power unit at
the Hrazdan Thermal Power Plant (TPP) as well as gas infrastructure
facilities in Armenia.
In December 2013 the fifth power unit (480 MW) at the Hrazdan TPP
was brought into the commercial operation. The said unit operated
in a pilot mode from January 2012 and produced over 2 billion kWh
of electricity.
In the same month the Russian Energy Ministry and the Armenian Energy
and Natural Resources Ministry signed an intergovernmental Sales and
Purchase Agreement for ArmRosgazprom's shares and the company's future
activities. The document provides for increasing Gazprom's stake
in ArmRosgazprom from 80 to 100 per cent. Gazprom and ArmRosgazprom
signed a contract for Russian gas supply to Armenia from 2014 to 2018.
According to the document, Gazprom will annually provide Armenia with
2.5 billion cubic meters of gas and its price will be determined
by a price formula linked to the pricing mechanism for natural gas
in Russia.