OREANDA-NEWS. April 11, 2016. Alexey Miller, Chairman of the Gazprom Management Committee, today made a working visit to Armenia as a member of the delegation headed by Russian Prime Minister Dmitry Medvedev.

The meeting with Hovik Abrahamyan, Prime Minister of the Republic of Armenia, addressed, inter alia, bilateral cooperation in the energy sector. The parties commended Gazprom for its contribution to the development of the Armenian gas industry.

Particular reference was made to the General Gas Supply and Gasification Scheme of the Republic of Armenia developed by Gazprom. It was noted that the implementation of the Scheme would help modernize Armenia's gas transmission system and ensure a substantially more reliable gas supply to consumers.

Alexey Miller and Vardan Arutyunyan, Chairman of the Management Committee and Director General of Gazprom Armenia, today signed an Addendum to the Contract for Russian gas supply to Armenia from 2014 to 2018.

The signing ceremony was held in the presence of Russian Prime Minister Dmitry Medvedev and Armenian Prime Minister Hovik Abrahamyan.

“We are strengthening cooperation with our Armenian partners. Gazprom is promptly responding to the increasing gas demand in Armenia and is ready to ramp up the supply of natural gas, including from Iran under swap deals. Moreover, the Company will further contribute to the development of Armenia's gas transmission infrastructure,” said Alexey Miller.

Background

In 2013, Gazprom and Gazprom Armenia signed the Contract for Russian gas supply to Armenia from 2014 to 2018. According to the document, Gazprom provides Armenia with up to 2.5 billion cubic meters of gas per year. The price of gas is determined by a formula linked to the pricing mechanism for natural gas in Russia. Gazprom Export delivers gas to the Armenian border where it is purchased by Gazprom Armenia. In 2015, Gazprom Group supplied Armenia with 1.9 billion cubic meters of gas.

Gazprom Armenia, a wholly-owned subsidiary of Gazprom, is focused on natural gas supplies to the Armenian market. In addition, the company transports, stores, distributes and sells natural gas as well as upgrades and expands the gas transmission system and underground gas storage facilities in the Republic of Armenia.

In 2015, Gazprom developed the General Gas Supply and Gasification Scheme of the Republic of Armenia. The Scheme provides for large-scale overhaul, upgrade and modernization of the country's gas transmission infrastructure.