ArmInfo. All the consumers of natural gas in Armenia starting with January 1 2017 will have an opportunity to save a total of AMD 13, 4 bln (about USD 28 mln as per current exchange rate), Hrant Tadevosyan, the Director General of Gazprom Armenia JSC told journalists on November 25, commenting the decision of the Public Services Regulating Commission (PSRC) of Armenia, which has approved today the Company's application on revision of the tariffs for consumers.
According Hrant Tadevosyan, that AMD 13, 4 bln should become the source of revenues for the Company if the tariff would remain the same. Folowing current agreement with Georgia, 10% of all the gas volumes supplied is left to Georgia for the transit. According to Director general, it is obvious that the total amount of these volumes essentially exceeds all the international prices for gas. The Agreement mentioned expires on January 1, 2017. Hrant Tadevosyan expects that the new Agreement will essentially decrease the price for transit services. We should also consider the fact that Gasprom Armenia has implemented a number of projects at its own costs and utilizing the loands. Starting with January 1, 2017 Gasprom does not plan any large projects, particularly in respect to capital construction.
On November 25, the Public Services Regulatory Commission of Armenia (PSRC) approved Gazprom Armenia's request about revision of the natural gas tariffs for consumers in Armenia. The new tariffs will come into effect on 1 Jan 2017. When presenting the draft decision, Garegin Baghramyan, Head of the PSRC Department for Tariff Policy, said that the company's request envisages diversification of subscribers and tariffs in five groups: 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. Previously, Gazprom Armenia requested the Public Services Regulatory Commission (PSRC) of Armenia to revise the gas tariffs to prevent a decline in gas nsumption, 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 CJSC took into ount the expected decline in the price of natural gas transit via Georgia. 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. Gazprom Armenia also took into account that consumption is expected to grow due to the reduction in natural gas tariffs for the consumers of Armenia. Gazprom - the sole shareholder of Gazprom Armenia CJSC - is expected to finance the possible risks. 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.