Russian gas cheaper 30% for Serbia, says mining Minister Bacevic

, News Serbia Energy

Price of Russian gas is 20 to 30 dollars lower in Serbia than in other European countries, declared Minister of Mining and Spatial Planning, Milan Bačević.

Only Romania has lower gas prices than Serbia, but Romania satisfies 60% of needs from its own production and it doesn’t have much need to import, on contrary to Serbia which has only 15% of required amounts and it has to import gas, added Minister.

“Serbia pays costs of transport through Hungary within total price in amount of 25 to 40 dollars per 1000 cubic. That increases the price, but not that much we have to buy expensive gas from Russia, said Minister Bačević.

He expects that Serbia will have more possibilities to buy gas from Russia at more affordable prices after the construction of South Stream.

“Gas will be surely cheaper than now in future, and this energy is the cheapest in Serbia at the moment, except for Romania and England which are supplied from North Sea”, added Bačević.

International contract between Serbia and Russia may not be that happily formulated so it is the usual subject of press speculations. It gives us advantage with reference to many other European countries when it comes to gas price which is fixed and when it comes to delivery guaranty.

“We have gas in bigger amounts than we really need and for all amounts we get from Russia and we haven’t spend, we don’t need to pay penalties like other countries”, said Minister and added that we need to have on mind other benefits from contract with Russia when it comes to mine rent amount for oil and gas that Russia pays.

“It is correct that mine rent for NIS is low, only three percent. If I were in charge of it, it would be 7 or 8%”, said Bačević and reminded that is an “old story” and it was defined during previous government’s mandatory.

He underlined that we should not forget that GazpromNeft is the biggest investor and charger of Serbian budget and that we are satisfied with their work. He stressed that GazpromNeft NIS has invested 550million Euros only in Pančevo refinery, and it will invest additional 1,5billion Euros in Serbia in next three years.

The international agreement with Russia will enable beginning of South Stream pipeline construction what represent the most beautiful picture of good will and good relations between Serbia and Russia, said Bačević. He reminded that Serbia will have 500 to 600million Euros of incomes by transit taxes and the pipeline yearly.

Source Serbia Energy Magazine