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United Press International
Nov 10 2006
UPI Energy Watch
By ANDREA R. MIHAILESCU
UPI Energy Correspondent
Gazprom secures pipeline deal with Iran, Armenia
Russian gas giant Gazprom has acquired control of the
Iranian-Armenian gas pipeline, in move industry experts say is an
attempt to secure its leverage on the European gas market.
In 2005, Gazprom inked an agreement in which Armenia would pay only
$110 per cubic meter of gas, which is approximately half the market
price, in return for Gazprom taking a 45 percent stake in the
ArmRosGaz joint venture, which controls both Armenia's domestic gas
distribution network and the soon-to-be-completed gas pipeline from
Iran, The Times of London reported.
Armenian and Gapzrom officials met last week to discuss Gazprom's
interest in raising its stake in ArmRosGaz to 58 percent by
purchasing an additional $119 million of shares in the company.
With a control over the Iran-Armenian pipeline, Gazprom would be the
first to supply Iranian gas to Europe. The pipeline could have become
a rival source of gas for Western Europe, which is increasingly
dependent on Gazprom.
Alexander Medvedev, deputy chairman of Gazprom, told The Times: "It's
a profitable project for us. We hope to use the joint venture to
become involved in extraction and development, and possibly help
supply gas through the joint venture to Western Europe, as well as
Pakistan and India."
Nov 10 2006
UPI Energy Watch
By ANDREA R. MIHAILESCU
UPI Energy Correspondent
Gazprom secures pipeline deal with Iran, Armenia
Russian gas giant Gazprom has acquired control of the
Iranian-Armenian gas pipeline, in move industry experts say is an
attempt to secure its leverage on the European gas market.
In 2005, Gazprom inked an agreement in which Armenia would pay only
$110 per cubic meter of gas, which is approximately half the market
price, in return for Gazprom taking a 45 percent stake in the
ArmRosGaz joint venture, which controls both Armenia's domestic gas
distribution network and the soon-to-be-completed gas pipeline from
Iran, The Times of London reported.
Armenian and Gapzrom officials met last week to discuss Gazprom's
interest in raising its stake in ArmRosGaz to 58 percent by
purchasing an additional $119 million of shares in the company.
With a control over the Iran-Armenian pipeline, Gazprom would be the
first to supply Iranian gas to Europe. The pipeline could have become
a rival source of gas for Western Europe, which is increasingly
dependent on Gazprom.
Alexander Medvedev, deputy chairman of Gazprom, told The Times: "It's
a profitable project for us. We hope to use the joint venture to
become involved in extraction and development, and possibly help
supply gas through the joint venture to Western Europe, as well as
Pakistan and India."