Armenia says Iran Gas Price 'Too High'
Iran has been negotiating to increase gas deliveries to Armenia, but the latter has complained the price on offer is too high.
Iran offers gas to Armenia at a higher price than Russia, deputy minister of energy and natural resources Hayk Harutyunyan told journalists April 5, according to local media.
Currently Iran barters its gas with Armenian electricity (1 m3 of gas in exchange for 3 kWh of power) but Tehran is now thinking of additionally selling gas to its Caucasian neighbor.
Last year Iran delivered 340mn m3 gas to Armenia under its swap arrangement, about 9% less than 2016, but is now looking to at least triple that volume. Iranian President Hassan Rouhani also said during a visit to Turkmenistan last week that Tehran is keen to swap gas, receiving it on its northeastern frontier with Turkmenistan, and delivering some of it via northwest Iran to Armenia.
Armenian officials didn’t mention Iran’s offer price. However, Russia is known to supplying gas to Armenia at a very competitive price of $150/'000 m3 ($4.17/mn Btu)
Iran started supplying Turkmen gas to Azerbaijan back in August 2016. But Turkmenistan cut off supplies to Iran in January 2017 and has since referred Iran to international arbitration.