Minister: Armenia prefers Russian gas, since it is 10% cheaper than Iran`s

ArmInfo. Armenia prefers Russian  gas for the simple reason that it is 10% cheaper than Iran's. The  newly appointed Minister of Energy Infrastructures and Natural  Resources of the Republic of Armenia Artur Grigoryan announced this  on May 25 in a conversation with journalists.

It is interesting that the new minister first announced the cost of  his gas offered by Iran - $ 165 per 1,000 cubic meters. All previous  leaders of the country's energy department shied away from answering  this question, referring to its commercial component. "The Iranian  gas on the border with Armenia is more expensive than the Russian,  Iranian gas at the border costs $ 165 per thousand cubic meters, and  we receive $ 150 for Russia. In addition, Gazprom-Armenia annually  invests $ 27-28 million in the modernization of the country's gas  distribution system", the minister stressed. According to him,  negotiations with Iran will continue. "We will continue to work to  find other sources of cheaper gas," Grigoryan said.

Iran is supplying "blue fuel" to Armenia within the barter deal "gas  in exchange for electricity." The cubic meter of natural gas received  from IRI Armenia is calculated by deliveries in the opposite  direction of 3 kWh electricity. In 2017, the import of Russian gas to  Armenia increased by 7% and amounted to 1.996 billion cubic meters,  the volume of deliveries of Iranian gas last year amounted to 382.7  million cubic meters. In early April 2016, Armenia and Russia signed  an intergovernmental agreement under which Russia reduced the price  of natural gas supplied from $ 165 to $ 150 per 1,000 cubic meters.