Agreement for South Stream construction in Serbia to be signed by late June
The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Slavenko Terzic, Ambassador Extraordinary and Plenipotentiary of the Republic of Serbia to the Russian Federation.
The meeting participants reviewed the bilateral cooperation in the gas sector, paying special attention to the progress with South Stream. It was pointed out that the project was advancing in strict compliance with the schedule. At present, the bidding procedure for designing, constructing and commissioning the Serbian section is nearing completion. The bidding results will be announced and the relevant agreement will be signed in late June 2014.
It was pointed out that the Banatski Dvor UGS facility, currently operating in Serbia as a part of the South Stream infrastructure, significantly reinforced the energy security in the Republic. By the forthcoming heating season the working gas capacity in the UGS facility will be increased to its maximum of 450 million cubic meters in order to provide an extra guarantee of reliable Russian gas supplies to Serbian consumers during the next winter period.
South Stream is Gazprom's global infrastructure project aimed at constructing a gas pipeline with a capacity of 63 billion cubic meters across the Black Sea to Southern and Central Europe for the purpose of diversifying the natural gas export routes and eliminating transit risks. The first gas will be supplied via South Stream in late 2015. The gas pipeline will reach its full capacity in 2018.
South Stream Serbia joint project company (Gazprom and Srbijagas holding 51 and 49 per cent respectively) is implementing the project in Serbia. The South Stream project was awarded the special status by the resolution of the Serbian Parliament.
The Banatski Dvor UGS facility with a working gas capacity of 450 million cubic meters was commissioned in Serbia in 2011. This gas storage is the first facility of South Stream and will be used for ensuring reliable gas supply via this gas pipeline.
In March 2013 the long-term Contract was signed for Russian natural gas supply to Serbia in the amount of up to 1.5 billion cubic meters of gas annually for a period of 10 years. Gas is conveyed via the existing route and subsequently – via the South Stream gas pipeline.
In 2013 Gazprom supplied Serbia with approximately two billion cubic meters of gas.