Serbia: Benefits from South Stream?, the report

, News Serbia Energy

The South Stream pipeline will bring great benefit to Serbia and investments worth 1.7 billion euros, experts estimate. After the announcement that works on the construction of the South Stream pipeline through Serbia officially start on 24 November this year, Serbia, in the opinion of experts, expects realization of one of the most valuable investments in the last few decades, “the first real project” which will bring great benefit and an investment worth 1.7 billion euros.

The start of construction of the gas pipeline through Serbia was agreed on 11 November, at the meeting of Serbian Prime Minister Ivica Dacic and Chairman of the Board of Gazprom Alexei Miller.

The Russian delegation met separately with Serbian President Tomislav Nikolic and Deputy Prime Minister Aleksandar Vucic, and during these meetings the importance of the project for the Serbian economy and cooperation between the two countries was emphasized.

The Russian side has proposed official signing of three documents to be on 24 November: an agreement on gas transit through Serbia, Serbian agreement on financing share, and a special agreement with the Government of the Republic of Serbia.

The ceremonial start of construction of the South Stream in Serbia is expected, according to previous announcements, near the village of Kovilje in Vojvodina, and in February practical works should start.

The section of gas pipeline through Serbia is 421 kilometers long, it is worth 1.7 billion euros, and its construction will employ thousands of workers and Serbian construction companies, equipment manufacturers and companies in the service sectors.

Thanks to this project, Serbia will become a regional energy hub, and it will be safe in energy.

The entrance of the South Stream from Bulgaria in Serbia will be in Zajecar and exit near Subotica, with two planned branches to Croatia and to the Republic of Srpska and the possibility of a branch pipelines going to Macedonia and Kosovo are being considered.

Construction of the South Stream pipeline through Serbia will be implemented by a joint venture the “South Stream Serbia”, in which Srbijagas has 49 percent, and the Russian Gazprom a 51 percent stake. For that gas pipeline location permit is prepared, the preliminary design and spatial plans for special purpose, and Serbia has adopted a special law on the South Stream, which will speed up land acquisition along the route of the gas pipeline through Serbia.

The South Stream pipeline through Serbia will be built in eight lots, and compressor stations will be near Paracin and Vrbas.

It was announced that for the South Stream through Serbia 500 MEUR will be available in 2014.

Commissioning of the pipeline is planned by the end of 2015.

“South Stream is very important for Serbia in the energy, and economic terms, and anyone who wishes good to Serbia should wish that South Stream is implemented soon,” Serbian president of Gas Association Vojislav Vuletic stated.

“For the construction of South Stream in Serbia 73 per cent of Serbian citizens declared. A huge amount of gas will pass to central and southern Europe through our territory, and Serbia will benefit through the payment of transit fees,” says Vuletic.

South Stream is important because, when that gas pipeline passes through our territory, Serbia will be able to build a gas power plants to produce electricity, which is more and more imported, and also for the growing demands of “green kilowatts” and the fulfillment of obligations related to reducing air pollution, he added Vuletic.

Professor of Faculty of Economics, Ljubomir Savic, told Tanjug that South Stream was one of the most important joint projects with Russia, and stressed that it is a capital investment, which is important not only for the energy sector, but also for other industries in Serbia.

Benefits of the South Stream to Serbia are huge and that gas pipeline frees us of energy dependence and includes us in the map of European gas pipeline, said Savic.

Source; Serbia Energy

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