Armenia definitely cannot find alternative to Russian gas at such low price – Konstantin Simonov

Konstantin Simonov, Director General of the National Energy Security Fund, spoke to Alpha News on the sidelines of the 18th Verona Eurasian Economic Forum in Istanbul about Armenia’s ability to diversify its gas supplies and find an alternative to Russian gas at a similarly low price.

The expert believes that, given the current regional situation, Armenia cannot find gas suppliers offering rates lower than Gazprom’s—$165 per thousand cubic meters.

“Absolutely not, that’s a safe bet. Why? Because, as we know, Armenia ranks second after Belarus in terms of Russian gas prices. In fact, there are big questions about where Armenia will physically find this gas. Where will it get it from? What alternative options are there? In terms of pricing, I repeat, all alternative options seem quite far-fetched.

The price you’re currently seeing is clearly not available on the market. These are realities that cannot be disputed. But if you find a supplier willing to offer gas below market value, let’s explore those options. I simply don’t know any,” Simonov said.

The expert noted that geography prevents Iran from supplying gas to the north, despite its vast reserves.

“We first need to understand how this will be implemented. Which route will Iran use for deliveries? You know that Iran’s gas situation is quite interesting. Why? Because Iran holds the second-largest gas reserves in the world, but all the main reserves are located in the south of the country. In this regard, Iran itself has a serious gas shortage in the north. You know that Iran is planning to begin supplying Russian gas to the north of the country. So, Iran is a potentially significant player in the gas market, and its reserves are a strong argument. But the very location of these reserves, the geography itself, in this case, works against Armenia. Well, if you’re determined to move away from Russian gas, then geography will work against you,” Simonov noted.