Serbia: Srbijagas’ restructuring plan approved

, News Serbia Energy

Restructuring plan for state-owned gas company Srbijagas, which envisages the separation of its gas transport and gas distribution activities, in line with the EU obligations was approved by the Government, said Serbian Minister of Mining and Energy Zorana Mihajlovic.

Minister Mihajlovic said that, according to plan, gas transportation will be performed by Transportgas Srbija and gas distribution by Distribucijagas Srbija, both subsidiaries of Srbijagas. She also said that it will resolve the issue of Srbijagas holding stakes in several companies.

The restructuring and unbundling of Srbijagas is a precondition for the opening of Chapter 15 – Energy in Serbia’s EU accession talks and this precondition should be fulfilled by October 2020. The Serbian Government and the Energy Community agreed on an action plan for the unbundling of Srbijagas in February 2015, according to which, the company should establish subsidiaries for the operation of the country’s gas transmission and distribution systems later that year. However, in 2019, the Energy Community said that Srbijagas continues to be engaged in both supply and transmission as the two subsidiaries are far from being independent system operators.