Natural Gas in Serbia

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Natural Gas Subsector
Serbia has modest domestic figures for the production of natural gas (its planned production for 2009 was around 224.2 million m3) from its natural gas reserves located in Vojvodina, the northern province of Serbia. Approximately 91% of the natural gas consumed in Serbia is imported.

The system for the transportation of natural gas includes a 2,140 km long high pressure pipeline (16-50 bar) stretching from the Hungarian border to Niš. The gas pipeline allows for the import of Russian gas from Hungary and the transit of gas to Bosnia and Herzegovina. The existing pipeline system is operated by the public utility company “Srbijagas”, with the exception of Section MG-9 Pojate-Niš, which is operated by the private company “Yugorosgaz”.

The natural gas distribution network consists of 650 km long middle-pressure (4-16 bar) and 3,000 km of long low-pressure (up to 4 bar) pipeline, and is located mostly in Vojvodina and to a lesser extent, central and southern Serbia. The majority of the distribution network is operated by the public utility company “Srbijagas”, and to a lesser extent by “Yugorosgaz” which is controlled by “Gazprom” and local distributors.

Development Priorities
Natural gas is expected to have an increasingly important role to play in the provision of energy over time because of its price and its relatively favourable impact on the environment. The main goals in the development of the gas sector include the following:

The revitalization and modernization of the old gas transportation system (on average its infrastructure is over 30 years old).

The expansion of the existing capacities of the natural gas transportation system (from the current annual figure of 6,100 million m3) to an annual figure of 6,800 million m3.

The expansion of the gas distribution network to the western, southern and eastern parts of Serbia.

The construction of a connection to the Serbian gas pipeline with Bulgaria for the importation of Russian gas. In December 2006 the company ”Gazprom-Export” and the Serbian Ministry of Mining and Energy signed a memorandum of understanding on the construction of a 400 km long gas pipeline with a capacity of 20 billion m3s of natural gas through Serbia.

The finalization of the construction of the underground storage facility for natural gas “Banatski Dvor” with an annual capacity of 850 million m3 (covering 25% of the annual consumption in Serbia).