Intergovernmental agreement for South Stream in Republika Srpska to be ready soon
RELEASE
Release
The Gazprom headquarters hosted a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Milorad Dodik, President of Republika Srpska.
The parties discussed the main areas and outlooks of the cooperation in the energy sector, placing an emphasis on the South Stream construction. At present, the parties involved in the project are finishing the preparation of the intergovernmental agreement providing for joint construction and subsequent operation of a gas branch from the gas trunkline to Republika Srpska as well as boosting the gas-based power industry in the country.
The meeting participants signed the Basic Terms and Conditions of natural gas supply to Republika Srpska. The document provides for gas export to Republika Srpska via the existing gas transmission corridors from the mid-2015 until the moment when South Stream gas pipeline will be commissioned in the country. It was stressed that the Basic Terms stipulated gas supplies under a direct contract with local gas company GAS RES.
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.
GAS RES is a gas company of Republika Srpska. It is focused on gas distribution and sale across the country.