Gazprom and Srbijagas Create South Stream Serbia AG Joint Venture
The constituent documents, including the charter, of the South Stream Serbia AG joint engineering company (JEC), created by Gazprom and the Serbian state-owned company Srbijagas to implement the South Stream project in Serbia, were signed and registered today in Bern, Switzerland.
Among other things, South Stream Serbia AG will prepare a feasibility study of the Serbian section of the South Stream project. In addition, if a decision is made to go ahead with the investment, the company will design, finance, build and operate the gas pipeline in Serbia. Gazprom’s share in the JEC will be 51 per cent, while Srbijagas will hold 49 per cent.
The registration procedure will be completed in the near future.
Gazprom is investigating the possibility of constructing a pipeline across the Black Sea to South and Central Europe – the South Stream project – in order to diversify natural gas export routes.
On May 15, 2009 the parties signed the Basic Agreement of Cooperation for the South Stream project in Serbia. The document sets the specific principles of interaction between the parties and defines the procedure, terms and conditions of incorporation, as well as the operating mechanisms for the JEC.
Founded on October 1, 2005 by the Government of the Republic of Serbia within the reorganization of the state-owned Naftna Industrija Srbije (NIS), Srbijagas is the state-owned company dealing with natural gas transmission, distribution and storage in Serbia.