Armenia’s Public Services Regulatory Commission (PSRC) said in a statement that the price for the Russian natural gas is very likely to be preserved at its current level for the next 10 years.
"Armenia made commitments to return the investments made by Russian Gazprom in the fifth power unit of the Hrazdan Thermal Power Plant and ensure the internal rate of return. But the investments have not been returned; moreover, the credit obligations raised for the reconstruction of the plant have increased. To solve the problem, the Armenian and Russian governments reached an agreement according to which the Armenian side will annually provide $31.79 million to the company during 10 years - starting from February 1, 2022 - to ensure the stable operation of the Hrazdan-5 power plant," the PSRC said, ARKA reports.
The PSRC said that within the frames of this agreement, it will be possible to have a stable price of Russian gas at the rate of $165 per 1 thousand cubic meters for the next 10 years.
Gazprom’s subsidiary Gazprom-Armenia that acquired the 5th power unit of Hrazdan Thermal Power Plant in 2006 is said to have invested as many as $465.2 million to complete its construction and modernization.
The Russian natural gas is delivered to Armenia by Gazprom at a $165 per one thousand cubic meters, but Gazprom’s Armenian subsidiary - Gazprom Armenia - sells it to the bulk of Armenian households at almost $300. Gazprom Armenia also deals with the storage, distribution and sale of gas.
