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10.06.2013

“IRANIAN GAS CAN REPLACE RUSSIAN BUT IT IS MUCH MORE EXPENSIVE”

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Iran as a natural gas supplier can become for Armenia full-fledged alternative to Russia. This was said in the interview to REGNUM IA correspondent by the Armenian expert, head of the Center for Political Studies of “Noravank” Foundation Sevak Sarukhanyan. According to him, if the authorities of Armenia decide to buy gas from their neighbor Islamic republic instead of Russia, technically it is possible.

“The Iranian gas reserves are estimated approximately at 820 billion m3 and this state needs new markets for the export of its gas. Selling of the energy carriers to the international markets is one of the priorities of Tehran. There are also no problems in the technical aspect – in case of some investments the volume of the supplied gas can increase up to 2.5 billion m3 annually, meanwhile our country consumes about 1.8-1.9 billion m3, and the record for the last two years has been 2 billion m3. When they say that during the construction of the Iran-Armenia gas-pipeline a smaller diameter pipe was used they mean a possibility of once discussed transformation of Armenia into a gas transition country. But this is absurdity”, - said the expert, saying that there simply no place where the Iranian gas can be transitioned through Armenia.

As for the possible price of the Iranian gas for Armenia, Sevak Sarukhanyan mentioned that in Iran they needed to lower the export tariffs due to the difficult social and economic situation, which was formed in consequence of the international sanctions. “Today Armenia does not buy Iranian gas for money. “Gas for electricity” barter swapping is obtained. Iran is receiving 3kWh electricity for one cubic meter of gas, which is equivalent to approximately $230. If we buy gas for the domestic consumption for money the prices will be different. They were particularly mentioned by the Minister of Energy Armen Movsisyan - $335 for one thousand cubic meters”, - said the head of the Center for Political Studies of “Noravank” Foundation.

Sevak Sarukhanyan also touched on a topic of Iran’s gas policy in general saying that currently this country has been ceding its positions on the regional market. “For example Turkey bought Iranian gas for $500 for one thousand m3, bur recently their contract was revised in favour of lower prices. Iran was obliged to do this because it tends to increase the export of the energy carriers. But the supplies of the Iranian gas to Turkey will be shrinking and there are two objective reasons for that – growth of the Azerbaijani gas consumption in Turkey and plans of building Israel-Turkey gas pipeline. As for the later it is planned to supply gas from the recently opened big Israeli “Tamar” gas field. Correspondingly there will be less and less gas in the Tabriz-Erzurum gas pipeline. On the other hand if the economic sanctions in regard to Iran are reconsidered one day the gas price for Turkey will be revised again”, - said Sevak Sarukhanyan.

Let us remind you that “Armrusgasprom” Company approached with a proposal to the Public Services Regulatory Commission to revise current tariffs for the natural gas sold in the republic. “Armrusgasprom” offers to raise the tariffs for small consumers (up to 10 thousand m3 per month) from 132 thousand drams (about $318) to 221 thousand drams (about $532) for 1000m3; and for big consumers up to $392. Because of the tariff revision for gas the government of Armenia will subsidize the price for gas on 30%.

Previously the prime-minister of Armenia Tigran Sargsyan and Minister of Energy and Natural Resources Armen Movsisyan stated repeatedly that the Iranian gas cannot be an alternative to the Russian because of its high price. According to Movsisyan Iran offers Armenia gas at the price not lower than $335 for 1000m3 and this number will increase as in case with Turkey and in that case it will be more profitable to buy Russian gas. “The flow efficiency of the Iranian gas pipeline can be increased up to 3 billion m3 annually, and Armenia consumes 1.7 billion m3. It means that the Iranian gas could have become the alternative to the Russian but for its high price”, - said the Minister.


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