Serbia: South Stream issues is a topic for EU & Moscow talks, says Srbijagas CEO

24. December 2013. / News Serbia Energy

Construction of “South Stream” gas pipeline is important for Europe and Serbia, because it brings gas from new sources, says Dusan Bajatovic, “Srbijagas” general director. These gas amounts are necessary because it is impossible to catch up them with alternative energy sources, which are currently more expensive, says Bajatovic.

General Director of “Srbijagas” Dusan Bajatovic said that the construction of the “South Stream” gas pipeline was important for Europe and Serbia, because it brought gas from new sources and expected that Russia and the EU would agree on the project.

Bajatovic said that “South Stream” would reduce risk, increased stability in the gas supply and would have an impact on increasing competition in the market.

“Considering the projected rate of energy increase in the future, these gas amounts are necessary because it is impossible to catch up with alternative energy sources, which are currently much more expensive than any other fuel or nuclear energy”, said Bajatovic.

According to him, the economic world market is moving towards countries with emerging economies, especially in Asia and that is why Europe must give serious geostrategic economic response in order to be competitive.

“There is serious ground that Moscow and Brussels, namely Moscow and the national economies of European countries agree how to make deal for both sides benefit”, said “Srbijagas” director.

Bajatovic also added that the project “South Stream” was serious geo-strategic project, where Russia had the same interests as Europe. The European Commission asked earlier the “South Stream” project to be revised in order to comply with EU directives.

Sections construction of the international gas pipeline “South Stream” in Serbia began on 24th November and should be completed in two years. Value of that project part is 1.9 billion EUR, and the company South Stream Serbia realizes it, in which Russian Gazprom holds 51 percent, and “Srbijagas” 49 percent of ownership.

The “South Stream” pipeline should bring Russian gas to the customers in the southeastern and western Europe by the pipes under the Black Sea and overland through Bulgaria, Serbia, Hungary and Slovenia to Italy. The project is worth about 16 billion EUR, and gas supplies should start in 2016th.

Source; Serbia Energy/Srbijagas

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