Energy security has become one of Armenia’s most pressing strategic challenges. According to energy expert Astghine Pasoyan, the country’s heavy dependence on inexpensive Russian natural gas has created long-term vulnerabilities that cannot be resolved quickly.
Cheap Gas Comes With Strategic Risks
Pasoyan explains that Armenia’s gas supply contract allows preferential prices to be revised if domestic consumption falls below a specified threshold.
As a result, reducing gas use through energy efficiency or renewable energy could eventually lead to significantly higher import prices.
Around 93% of Armenia’s population is connected to the national gas network, making gas both a major advantage and a major vulnerability.
Gas Supports Much of the Economy
Russian gas remains substantially cheaper than prices paid by many European countries.
According to Pasoyan, about 73% of vehicles in Armenia run on compressed or liquefied gas.
Natural gas also dominates residential heating and provides most of the energy used for heating and hot water in many industrial facilities.
Electricity Production Also Depends on Gas
Around one-third of Armenia’s electricity is generated by gas-fired thermal power plants.
Another third comes from the Armenian Nuclear Power Plant, which depends on Russian nuclear fuel and undergoes regular maintenance shutdowns.
Hydropower provides the remaining share but varies significantly with seasonal water levels.
This means disruptions in gas supplies would also affect electricity generation.
Electrification Faces Economic Barriers
Armenia’s 2021 energy strategy promotes greater use of electricity in transport and heating to reduce dependence on imported gas.
However, Pasoyan says electric heating remains considerably more expensive than gas unless consumers generate their own electricity through solar power.
Iranian Gas Cannot Fully Replace Russian Supplies
According to the expert, only 12–13% of Armenia’s imported gas currently comes from Iran under the existing gas-for-electricity arrangement.
Pipeline capacity remains the main technical limitation.
She also notes that Iranian gas has a lower energy value, requiring larger volumes to produce the same amount of heat.
Pasoyan concludes that both Russia and Iran rely on finite natural gas reserves, making diversification and greater energy efficiency essential for Armenia’s long-term energy security.