Serbia: Another gas price drop possible

23. May 2016. / News Serbia Energy

Director of Srbijagas said that there is an interest for the construction of second gas storage in Serbia. Srbijagas has already contacted Russian Gazprom as its strategic partner and notified the European Commission and the Energy Community that the cheapest option for gas security in Serbia is to build gas storages in its territory.

Director of Srbijagas Dusan Bajatovic said that if dollar exchange rate does not increase in the meantime, another gas price drop is possible in the next quarter.

Last gas price reduction was on 1 April, when it was reduced by 12.7 % on average for public suppliers and by 11.8 % for households.

Regarding the restructuring of the company, Bajatovic said that it is progressing according to plan and the World Bank is expected to perform an audit and suggest a final model of financial restructuring. He reiterated that legal separation of activities is not a problem and that it will by done by 1 July this year.

On the matter of the expansion of Banatski Dvor underground gas storage, Bajatovic said that in order to cover the demand in Serbia the capacity of 750 million cubic meters of gas is enough, but the storage will be most likely expanded to one billion cubic meters. He also said that there is an interest for the construction of second gas storage in Serbia. Srbijagas has already contacted Russian Gazprom as its strategic partner and notified the European Commission and the Energy Community that the cheapest option for gas security in Serbia is to build gas storages in its territory.

The plan is to have storage capacity of at least 2 billion cubic meters in foreseeable future, since gas consumption in Serbia should increase to 3.7 billion cubic meters per year by 2022, transmits Serbia-energy.eu

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