Gazprom and Republika Srpska to accelerate drafting of intergovernmental agreement on South Stream
RELEASE
Release
A meeting between Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Milorad Dodik, President of Republika Srpska took place today as part of the St. Petersburg International Economic Forum 2014.
The parties addressed the issues of bilateral cooperation in the energy sector, placing a focus on South Stream. It was pointed out that Republika Srpska was drafting the intergovernmental agreement, which provided for the joint construction and operation of the South Stream's branch to Republika Srpska as well as for creating a number of gas-fired power generation capacities in the country.
The meeting participants stressed it was viable to speed up preparations for the intergovernmental agreement as well as expressed their confidence in successful and on time completion of the project.
Background
South Stream is Gazprom's global infrastructure project aimed at constructing a gas pipeline with a capacity of 63 billion cubic meters 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.
In 2012 Gazprom and Republika Srpska signed the Memorandum of Understanding, envisaging the possible construction of a gas branch from South Stream to Republika Srpska and gasification of the population centers along its route. The document also expresses the parties' interest in the development of power generation projects, including the conversion of existing power plants in Republika Srpska to natural gas.