Wednesday, 14 July 2010
Energy sector development challenges and prospects
Today the press conference of RA Minister of Energy and Natural Resources Armen Movsisyan was held at the press centre of government. The speaker presented the status of energy sector development programs. With reference to the latest developments around the Armenia-bound Georgia-transiting gas pipeline, the minister informed that Georgian authorities have not yet officially declared that they are going to sell the pipeline.
“The existing concerns are not properly grounded: “The pipeline was taken off the list of strategic facilities, with no official statements on its disposal issued as of yet,” Armen Movsisyan told the journalists. Even if Georgia decides to sell its stake, Armenia will not suffer from such a handover. Asked whether it is possible for the Armenian Armenia to submit a bid for the tender, the minister said in such an event the Government will have to think over the matter.
A number of achievements were said to have been recorded in the energy sector. Electricity output increased 15 % in the first half-year of 2010 as compared to the same period of last year. In this context, the speaker singled out the commissioning of a gas-steam combined-cycle power unit at the Yerevan TPP.
Large amount of preparative work was said to have been carried out in the framework of 3 major projects. The USD 350mn worth of Meghri HPP project is due to kick off shortly under the management of the Iranian “Farab Sepasat” company.
“We have agreed with the Iranian side that they should provide full financing for the project, and the Armenian side will refund its share upon completion in the form of electricity,” Armen Movsisyan said. The HPP will have a capacity of 140 megawatt which makes 880 million kWh per year on the average.
An oil-product pipeline project to a total cost of USD 160mn is due to start this late, with equal share of investment to be made by the Armenian and Iranian sides.
“We have agreed that the Iranian side will contribute the full amount of investment. The Armenian side will use its profit share to refund Iranian partners. The Iranian side has not yet made public the name of the company to carry out civil works,” Armen Movsisyan advised. Armenia will get ready-to-use gasoline and diesel fuel under this project. The minister further noted that logistical problems will be easier to tackle with the pipeline. Oil products were said to cost about 3-4 times less as imported through this new pipeline. The speaker stressed the reliability of this route.
A Euro108mn worth of high-voltage transmission line will be built starting this year under the management of the Iranian “Sanir” company.
As for the construction of a new NPP in Armenia, the minister said that the feasibility study is nearing completion. All outstanding issues will soon be addressed to pave the way for substantiated talks between stakeholders.
Concerning the electricity sales-related talks with the Turkish side, the speaker advised that a process is underway to that effect though no new deadlines have been agreed upon yet.
Mineral ore extraction went up 25% in the first half-year of 2010 as compared to the same period of 2009.
Uranium deposit exploration works were said to be underway in Kapan town of Syunik marz.
“It is still senseless to speak about the domestic stocks of uranium. Study will show whether they exist and in what quantities,” Armen Movsisyan told the journalists. As he said, only after specification of the existing quantities it will be possible to discuss an economic expediency-related agenda. Note that the ongoing activities will take at least 2 years to complete.
