Does Serbia have plan for future of its gas supply company Srbijagas

, News Serbia Energy


Ministry of Energy suggested to the Government to turn “Srbijagas” into closed stock society. Director of “Srbijagas”, Dusan Bajatovic is against this idea.

The reasons for this proposal from Ministry of Energy are financial savings but also that this is one of the tasks on the way toward EU accession. This idea like it is stated in the Ministry does not put into question the gas contract Serbia had signed with Russia.

“Srbijagas” is in huge debts. This company owes almost billion EUR and these debts are growing. The loss from the last year was only 35 billion dinars and the capital of this company reduced to only 13 million EUR.

35%, which go to the mediator company for gas sale which uses “Srbijagas” capacities, are also among big items which make losses.

Ministry suggested some changes in order to prevent “Srbijagas” losses, state indebtedness and in order to enable natural gas market stability- Petar Stanojevic, Deputy Minister of Energy for oil and gas, explains.

“The company for transport should be separated and formed in the first phase and this company supposes to begin it functions with rented assets of Srbijagas. Jugorosgas has done that already. People will remain there where they are, they will only go to another company”, Stanojevic states.

State plans to separate distribution and trade in stock societies with 100% capital in state’s ownership. Forming of new closed stock society “Transgas” is also planned.

Separation of these “Srbijagas” parts would make savings for Serbian budget in long terms.

“Srbijagas needs to become competitive and healthy company in order to compete on this market. It has to reform in order to become healthy and competitive- it is the one precondition. It already has other preconditions: agreement with Russia, it has goods for sale. They are helping her to become more competitive, to function in more rational way”, Petar Stanojevic believes.

When this document occurred in public, Director of “Srbijagas”, Dusan Bajatovic said that he doesn’t support this idea.

“Document is not official because it hasn’t passed through the Government. “Srbijagas” didn’t participate and it is not consulted about the reconstruction proposal. We are not agree with this. We’ll analyze it and send our opinion”, Bajatovic announced then.

Source; Serbia Energy/Agencies/B92