Agreement for South Stream construction in Serbia to be concluded soon

Source:Gazprom

Agreement for South Stream construction in Serbia to be concluded soon

A meeting between Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Dusan Bajatovic, Director General of state-owned Srbijagas took place today within the St. Petersburg International Economic Forum 2014.

The parties addressed the progress with South Stream in Serbia as well as the construction of the Banatski Dvor UGS facility. In particular, they discussed financing of the gas pipeline construction in Serbia as well as the ongoing bidding procedure for designing and constructing the Serbian section. It was pointed out that the bidding procedure was nearing completion and the relevant agreement would be concluded soon.

The meeting participants offered their condolences to the Serbian citizens in connection with the flood and noted that South Stream d.o.o. was providing support to the victims.

Background
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.

The South Stream project was awarded the status of a national significance project in Serbia. South Stream Serbia joint project company (Gazprom and Srbijagas holding 51 and 49 per cent stakes respectively) is implementing the project in Serbia.

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 will be conveyed via the existing route and subsequently – via the South Stream gas pipeline.

The Banatski Dvor UGS facility commissioned in 2011 is one of the largest gas storages in Southeastern Europe. Its working gas capacity is 450 million cubic meters and maximum daily deliverability is 5 million cubic meters. The Banatski Dvor UGS facility will secure reliable gas supply via the South Stream gas pipeline.

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