Gazprom Armenia
| Company type | Subsidiary |
|---|---|
| Industry | Oil and gas |
| Founded | 1997 |
| Founder | Gazprom, Armenia's Energy Ministry, ITERA |
| Headquarters | Armenia |
Key people | Vardan Harutyunyan (Director General) |
| Products | Natural gas supply, electricity generation |
| Parent | Gazprom |
Gazprom Armenia (; ), previously known as ArmRosGazprom (; ), operates as a subsidiary of the Russian energy conglomerate Gazprom within Armenia. Founded in 1997 as a collaborative natural gas pipeline enterprise between Russia and Armenia, its original share distribution consisted of Gazprom holding 45%, Armenia's Energy Ministry also owning 45%, and ITERA possessing 10%. In 2014, Gazprom took full control, subsequently rebranding the entity as Gazprom Armenia. The company is responsible for overseeing Armenia's internal gas supply and electricity generation. Vardan Harutyunyan currently serves as the Director General.
History
In April 2006, Armenia and Gazprom formalized a 25-year strategic partnership focused on gas and energy initiatives within Armenia. Subsequent to this agreement, Gazprom raised the natural gas price from a preferential rate of $54 to $110 per 1,000 m3, with this rate fixed until January 1, 2009.
To offset the impact of increased gas prices, the Armenian government transferred control over both the Iran-Armenia Natural Gas Pipeline and the fifth unit of the Hrazdan Thermal Power Station to ArmRosGazprom, with complete ownership finalized by January 1, 2007.
Russia intended to restrict the Iran-Armenia pipeline’s diameter to 700 mm in order to limit its transit capacity to neighboring countries such as Georgia; nevertheless, the pipeline was constructed with a diameter of 1,200 mm.
The Hrazdan Thermal Power Station, recognized as Armenia’s largest energy facility, aimed to finalize modernization of its fifth unit by installing a gas turbine engine capable of generating up to 140 MW.
In October 2006, Armenian President Robert Kocharyan revealed Gazprom’s intention to increase its ownership stake in ArmRosGazprom to 58%. Gazprom’s Executive Board approved acquiring additional shares for $118.8 million, thereby securing majority control.
By January 2014, Gazprom acquired the remaining 20% equity stake, achieving complete ownership and renaming the company Gazprom Armenia. The transaction was formalized by Gazprom Chairman Alexey Miller alongside Armenian Energy Minister Armen Movsisyan.
Criticism
Armenia’s dependence on Russian gas transiting through Georgia led to the development of the Iran-Armenia Natural Gas Pipeline as a means to reduce this reliance. Delivering approximately 1.1 bcm annually, this pipeline strengthened Armenia’s negotiating position vis-à-vis Gazprom. Nonetheless, critics contend that transferring control over the pipeline to Russia could exacerbate dependency issues, representing a substantial geopolitical advantage for Russia in the South Caucasus region.
Directors
- Roland Adonts (1997–2001)
- Karen Karapetyan (2001–2010)
- Vardan Harutyunyan (2010–2016)