Armrosgazprom
Encyclopedia
ArmRosGazprom was founded in 1997 as a joint Russia
n-Armenia
n natural gas
pipeline
project. The company organizes the gas supply for Armenia's domestic gas market. Director General is currently Karen Karapetian. The company is registered in Armenia as a ЗAО (Закрытое акционерное общество, Russ. or Closed Joint Stock Company) and when ist was founded, the Russian state gas monopolist Gazprom
owned 45% of stock, the Armenian Energy Ministry 45% and the ITERA
company 10%.
ARG buys the gas at the border from Gazexport, an export unit of Gazprom, and distributes it through the ARG pipeline, mainly to the domestic market. In 2005 Gazexport supplied 1.5 billion cubic meter (bcm) of gas, which were distributed to about 430,000 customers, but also enlarges the gas transport system and underground gas depots in Armenia. The company employs currently some 6,000 people. According to Karen Karapetian, ARG has invested $81 million for the past four years in Armenia, mainly into provision of natural gas, but also into infrastructure.
To avoid a higher prizes level for natural gas, the Armenian government had to make some concessions that the Iran-Armenia Natural Gas Pipeline
and the 5th unit of Hrazdan
TPS (Thermal Power Station
) get under control of ARG. Final owner rights must transit till 1 January 2007.
As part of the contract, Russia wanted to limit the diameter of the Iran-Armenia Natural Gas Pipeline to 700 mm to prevent the use of the pipeline to transport bigger amounts of gas to other countries like Georgia
. However, the pipeline was built with the diameter of 1,200 mm.http://www.gasandoil.com/GOC/news/ntr63953.htm
The Hrazdan TPS (Thermal Power Stations) is the biggest power station of the Armenian energy complex. The incomplete but modern 5th unit should be completed and equipped with gas turbine engine up to 140 MWt.
During a visit to Moscow at the end of October 2006, Armenia's President Robert Kocharyan announced, that Gazprom will buy additional ARG-shares and then controls 58% of the companies equity capital. On 27 October 2006 Gazprom's Executive Board approved acquire additional issues of ARG, which is most likely part of April's controversial deal. According to Karen Karapetian, Gazprom will pay $118.8 million to have the commanding share of ARG.
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
n-Armenia
Armenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...
n natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
pipeline
Pipeline transport
Pipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes that transport solid capsules using compressed air are also used....
project. The company organizes the gas supply for Armenia's domestic gas market. Director General is currently Karen Karapetian. The company is registered in Armenia as a ЗAО (Закрытое акционерное общество, Russ. or Closed Joint Stock Company) and when ist was founded, the Russian state gas monopolist Gazprom
Gazprom
Open Joint Stock Company Gazprom is the largest extractor of natural gas in the world and the largest Russian company. Its headquarters are in Cheryomushki District, South-Western Administrative Okrug, Moscow...
owned 45% of stock, the Armenian Energy Ministry 45% and the ITERA
Itera
ITERA International Group of Companies is a Russia-based private-owned corporate group with headquarters in Moscow. Its core business primarily focuses on gas and gas processing...
company 10%.
ARG buys the gas at the border from Gazexport, an export unit of Gazprom, and distributes it through the ARG pipeline, mainly to the domestic market. In 2005 Gazexport supplied 1.5 billion cubic meter (bcm) of gas, which were distributed to about 430,000 customers, but also enlarges the gas transport system and underground gas depots in Armenia. The company employs currently some 6,000 people. According to Karen Karapetian, ARG has invested $81 million for the past four years in Armenia, mainly into provision of natural gas, but also into infrastructure.
Recent developments
In April 2006, Gazprom and Armenia signed a contract for 25 years about strategic principles of cooperation in gas and energy projects in the Armenian territory. After this contract Gazprom raised the gas price from the preferential $54 per 1,000 m3 to $110 per 1,000 m3. The price is fixed on this still preferential level until 1 January 2009.To avoid a higher prizes level for natural gas, the Armenian government had to make some concessions that the Iran-Armenia Natural Gas Pipeline
Iran-Armenia Natural Gas Pipeline
The Iran–Armenia gas pipeline is a long pipeline from Iran to Armenia. The long Iranian section runs from Tabriz to the Iran–Armenia border. The Armenian section runs from the Meghri region to Sardarian, and another of pipeline is planned to reach the center of the country, where it will link up...
and the 5th unit of Hrazdan
Hrazdan
Hrazdan is the capital of the Kotayk province of Armenia. The name Hrazdan is derived from the Middle-Persian name Frazdan. Farzdan is connected to the Zoroastrian mythology. With a population of 52,900 it is the fifth-largest city in Armenia by population. It has lost significant population since...
TPS (Thermal Power Station
Thermal power station
A thermal power station is a power plant in which the prime mover is steam driven. Water is heated, turns into steam and spins a steam turbine which drives an electrical generator. After it passes through the turbine, the steam is condensed in a condenser and recycled to where it was heated; this...
) get under control of ARG. Final owner rights must transit till 1 January 2007.
As part of the contract, Russia wanted to limit the diameter of the Iran-Armenia Natural Gas Pipeline to 700 mm to prevent the use of the pipeline to transport bigger amounts of gas to other countries like Georgia
Georgia (country)
Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...
. However, the pipeline was built with the diameter of 1,200 mm.http://www.gasandoil.com/GOC/news/ntr63953.htm
The Hrazdan TPS (Thermal Power Stations) is the biggest power station of the Armenian energy complex. The incomplete but modern 5th unit should be completed and equipped with gas turbine engine up to 140 MWt.
During a visit to Moscow at the end of October 2006, Armenia's President Robert Kocharyan announced, that Gazprom will buy additional ARG-shares and then controls 58% of the companies equity capital. On 27 October 2006 Gazprom's Executive Board approved acquire additional issues of ARG, which is most likely part of April's controversial deal. According to Karen Karapetian, Gazprom will pay $118.8 million to have the commanding share of ARG.