Gazprom locks South Stream connection deal with Republika Srpska, other power gen projects in the pipeline

19. February 2013. / SEE Energy News

President of Republika Srpska Milorad Dodik said to Srna that the contract proposal which should formalize relation between Russia and Srpska with reference to “South Stream” should be done in the next couple of weeks.

Dodik explained that contract proposal will be made by jurists from Srpska and Russian Ministry of Foreign Business, so the formal conditions for forming the joint company between “Gasprom” and “Gas Res” will be made. This should happen in May or July, the latest.

“I got a letter from Russian Energy Minister who says that construction of the pipeline is a part of the global project “South Stream” for Srpska, what was confirmed with today’s talks”, said Dodik after the meeting with Russian Minister of Foreign Business Sergey Lavrov, President of Gasprom’s Managing Board Aleksey Miler, and his colleges in Moscow.

“Republika Srpska will have opportunity to make a contract with Gasprom for gas distribution and provision of required amounts of gas for Srpska after the new company is formed”, Dodik said.

President of Srpska emphasized that pipeline branch will be constructed in Srpska. It will come from Serbia and enter Srpska through Bijeljina. Exact location of entrance will be determined. It will go toward Banjaluka to Novi Grad.

Dodik estimated that solution to the problem of pipeline branch from Serbia to Srpska is very important, so this question is arranged to be solved by “Srbijagas”, “Gas Res” and “Gasprom”.

“Political attitude was determined and support was given to this solution earlier in meetings of these two governments. All this together tells us that this project should be approached very seriously and that it won’t be any slowdowns”, Dodik added.

President said that arrival of operatives from Gasprom that will work on contract details is expected in March and that Miler confirmed his advent in Banjaluka when he will sign commercial contract for gas guaranties for Srpska.

Dodik stressed that this is the one of important days for Srpska, considering the certificates gotten today with reference to the project realization.

“To have gas as energy resource presents a stable and safe energy future. On the other side, gas is ecologically clean. It doesn’t pollute environment and enables industry and citizens’ easy transfer to gas use”, Dodik stated.

President of Srpska estimated meeting talks to be very successful. He stressed that Russian orientation was confirmed during the meeting with Miler, as well as two gas power plants construction in Srpska.

Heating plants in Banjaluka, Doboj, Bijeljina and Brčko that would provide additional amounts of gas were mentioned on the meeting with Gasprom representatives.

“Possible reconstruction of TPP Ugljevik that has old technology was also reconsidered”, President of Srpska said.

Dodik added that this plant is arranged to transfer to gas during time, what would provide maintenance of work places and energy stability of Ugljevik and the whole Srpska.

He concluded that not only gas pipeline construction is waiting on Srpska, but also construction of secondary network for district heating. He stressed that operational activities on construction of network and gas distribution will begin in a month and they suppose to be finished when gas comes to Srpska.

“Those who think well to Srpska have to be satisfied because Srpska ensured something that would provide big energy stability and new work places in the future, with a lot of understanding of Russian partners”, Dodik underlined.

Source Serbia Energy SEE Desk/Gov RS

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