Serbia to divide Srbijagas into storage and distribution company, gas market reform ahead says Mihajlovic energy minister

, News Serbia Energy

The Ministry of Energy has received positive opinions from the other ministries in the Serbian government regarding its Srbijagas restructuring plan and expects it will be approved soon stated Energy Minister Zorana Mihajlovic.

Srbijagas is currently EUR 1.2 billion in the red and we need to make up these losses and determine how they occurred, but we also need to keep the company operational, said the minister, stressing the government wants to run an efficient and profitable business.

“Our goal is energy security, a stable gas supply, better quality gas for our consumers, and satisfied employees,” she added.

Both Srbijagas and Transgas, which will be created in the reorganization of the existing company, will be state-owned, said the minister.

“Today Srbijagas’s capital is only RSD 1.5 billion (around EUR 13.5 million). What will happen to the company in a year’s time if we do not reform it,” she asked.

The minister recalled a lot of work will be done in the natural gas distribution sector in the coming period, referring to the South Stream gas pipeline, the Banatski Dvor storage facility, and the Nis-Dimitrovgrad pipeline.

The Ministry has completed all the necessary preparations and construction is expected to start on South Stream towards the end of the year.

“Works still have not started in Serbia, not because of us, but because they were behind schedule in all other countries. As far as laws and subordinate legislation, we have prepared everything,” said the minister.

She expects Serbia will receive additional quantities of gas through the South Stream in a couple of years, in 2015 or 2016.

Source; MERZ