Gazprom Armenia 3.5

Gazprom Armenia, formerly known as ArmRosGazprom, is a subsidiary of the Russian Gazprom company in Armenia. It was founded in 1997 as a joint Russian-Armenian natural gas pipeline project. When it was founded, the Russian state gas monopolist Gazprom owned 45% of stock, the Energy Ministry of Armenia 45% and the ITERA company 10%. In 2014, Gazprom became the sole owner of the company and renamed it Gazprom Armenia. Director General of the company is Karen Karapetyan.The company operates the gas supply for Armenia's domestic gas market as also power generation.HistoryIn April 2006, Gazprom and Armenia signed a contract for 25 years about strategic principles of cooperation in gas and energy projects in the Armenian territory. After this contract Gazprom raised the gas price from the preferential $54 per 1,000 m3 to $110 per 1,000 m3. The price is fixed on this still preferential level until 1 January 2009.To avoid a higher prizes level for natural gas, the Armenian government had to make some concessions that the Iran-Armenia Natural Gas Pipeline and the 5th unit of Hrazdan Thermal Power Station get under control of ARG. Final owner rights must transit till 1 January 2007.As part of the contract, Russia wanted to limit the diameter of the Iran-Armenia Natural Gas Pipeline to 700 mm to prevent the use of the pipeline to transport bigger amounts of gas to other countries like Georgia. However, the pipeline was built with the diameter of 1,200 mm.