Serbia: Gazprom announces first work contracts for South Stream project line in Serbia

29. May 2014. / News Serbia Energy

Tender for selection of a contractor for building a section of the South Stream pipeline in Serbia has been completed and will soon be signed a contract with contractors, the Russian national company Gazprom stated.

According to the statement, it was said at the meeting, Chairman of the Board of Gasrpom Aleksandra Medvedeva and CEO of Srbijagas Dusan Bajatovic on the sidelines of the International Economic Forum in St. Petersburg.

At the meeting, it was discussed about financing of the construction of South Stream in Serbia, the implementation of the project and the development of underground gas storage in Banatski Dvor.
South Stream is Gapspromov’s project for construction of a gas pipeline capacity to 63 billion cubic meters per year, which will pump Russian gas pipes below the Black Sea to the countries of Southern and Central Europe. The pipeline will bypass Ukraine, through which delivers Russian gas in this part of Europe now.
Gasrpom’s plan is that the first deliveries of gas through the South Stream, in which will be invested over 16 billion euros, will start at the end of 2015, and full capacity will be reached in 2018..
Construction of the section of South Stream in Serbia officially began on November 24th, 2013 and should be completed in two years, by which Serbia will get a second pipeline for supplying with Russian gas.
The value of this part of the project is 1.9 billion euros, and it will be implemented by the company South Stream Serbia, in which Russian Gazprom holds 51 percent and 49 percent is ownership of Srbijagas
About the realization of this project there is discord, EU is claiming that the agreement on the construction of the South Stream does not respect the EU Third energy package.
The European Commission has requested that already signed contracts for the construction of South Stream between Russia and several EU countries and Serbia renegotiate, but it was disputed by Moscow and some members of the EU, but a working group on a technical level, is trying to reconcile the views of the two sides.

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