Thursday, November 3 2016 12:45
Naira Badalian

Gazprom Armenia presents key goals and factors of gas tariff revision

Gazprom Armenia presents key goals and factors of gas tariff revision

ArmInfo. Gazprom Armenia has presented the key goals and factors of gas tariff revision. "Gazprom Armenia has requested the Public Services Regulatory Commission (PSRC) of Armenia to revise the gas tariffs to prevent a decline in gas consumption, create favorable conditions for stabilization of the gas consumption market, growth of gas consumption, as well as for stimulation of the gas consuming companies' activities," Gazprom Armenia says in a statement.    

The statement says that Gazprom Armenia CJSC has taken into account the decline in the price of natural gas transit via Georgia. The company recalls that the contract on transit of natural gas to Armenia expires in late 2016 and that a new contract should be signed between Gazprom Export LLC (the gas supplier to Armenia) and Georgian Gas Transportation Company LLC. "The Armenian Government has initiated negotiations involving Gazprom Armenia CJSC, Gazprom Export LLC and the Georgian side for possible reduction of the transit prices," the statement says. 

Gazprom Armenia has also taken into account that consumption is expected to grow due to the reduction in natural gas tariffs for the consumers of Armenia. The statement says that Gazprom - the sole shareholder of Gazprom Armenia CJSC - is expected to provide funding for stabilizing the gas consumption market in Armenia and stimulating growth. 

It was reported earlier that Gazprom Armenia CJSC submitted a request on a new gas tariff to the PSRC on 1 November 2016. The PSRC has told ArmInfo that the request will be reviewed in the shortest time possible. The decision on the new gas tariff will come into effect on 1 Jan 2017, because the latest decision on tariff revision came into force on 1 July 2016.    

To remind, the company previously reported that its request implies diversification of subscribers and tariffs:

1. the subscribers having the right to social allowances and consuming less than 600 cu m of gas per annum will pay 100 thsd AMD per 1 thsd cu m; 2. greenhouse facilities will pay 212 conventional units per 1 thsd cu m from November 1 till March 31; 3. processing enterprises will pay 212 conventional units per 1 thsd cu m; 4. subscribers consuming less than 10 thsd cu m per month will pay 139 thsd AMD per 1 thsd cu m; 5. subscribers consuming more than 10 thsd cu m of gas per month will pay 242.1 conventional units per 1 thsd cu m.  For every consequent thousand of cu m they will be charged USD 212.  Along with that, there are no bonuses set out for gas filling stations, budget funded entities and TPPs generating electric power for domestic consumption.

To recall, once appointed Prime Minister, Karen Karapetyan stressed the need to revise the gas and electricity tariffs. He also pointed out the need to reduce the impact of the tariffs on the vulnerable social groups, as well as to ensure a galvanizing effect of the tariffs on business development, specifically in agriculture and processing industry.      

Gazprom Armenia CJSC is a 100% subsidiary of the Russian Gazprom and the supplier of natural gas to the domestic market of Armenia. 


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Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000