Serbia: South Stream tender for works in Serbia will be announced in September, 1,7 billion euro share for Serbia to be financed by Russian banks

18. July 2013. / News Serbia Energy

Tender for construction of South Stream Pipeline Sector in Serbia will be announced in September and works will begin at the end of November or in the beginning of December. The first pipe will be welded in the beginning of December depending on the time the biggest officials in Serbia and Russia have”, Director of Srbijagas, Dusaj Bajatovic said.

Bajatovic stressed that financing of South Stream Sector in Serbia is provided and it amounts 1,7 billion EUR and Serbia will invest 105 million EUR in total.

He added that the rest of money will be provided from Gasprom and Russian banks within project financing with interests equal or lower than those offered by western banks.

Director of Srbijagas stated that there are no changes of plan for construction of South Stream Pipeline Sector in Serbia that will have 40 billion cubic meters per year that will be 450 km long and have two sectors for supply in Croatia and Republika Srpska.

As he added, projecting of these two branches has begun and land expropriation in these areas is expected to start soon.

Bajatovic said that the main project will be adjusted to tender announcement and that Serbian companies, especially construction companies, will be maximally informed in construction of South Stream in Serbia.

He stressed that Underground Gas storage “Banatski dvor” is the first finished object on the South Stream track and that the second development phase should be realized in the beginning of gas transport in South Stream.

Bajatovic reminded that gas storage should have capacity of billion cubic meters after realization of this second phase and it can be used for consumers’ supply in BiH in Croatia.

Construction of one more underground storage is planned in cooperation with NIS and Gasprom that would be placed in Itebej and it would have capacity of billion cubic meters also”, Bajatovic stressed.

Storage in Banatski Dvor is completed in 2011 and the owners are Gasprom with 51% of capital participation and Srbijagas with 49%.

Future main pipeline South Stream, common project between Gasprom and Italian Eni, should transport Russian gas below Black Sea within pipeline 900 m long up to Bulgaria, over Serbia and other European countries.

Value of investment is estimated to 20 billion EUR, and pipeline capacity should be 63 billion cubic meters a year, construction should begin in 2011 and deadline for end of work is the end of 2015.

Agreement for South Stream has been signed by Bulgaria, Hungary, Greece and Slovenia, next to Serbia so far. Serbia first established common company with Russian Gasprom, this company will be in charge of South Stream realization.


Source; Serbia Energy

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