Source: Politika | Wednesday, 20.05.2009.| 14:57
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Južni Tok to enter Serbia near Zaječar and to exit country near Subotica - construction of gas pipeline through Serbia to cost minimum 700m EUR

- Gas pipeline "Južni tok" will enter Serbia near Zaječar, the main knot will be near Belgrade, while one branch will go from Batajnica to Republic of Srpska. The pipes will exit Serbia in the vicinity of Subotica. The second branch of the gas pipeline will be connecting Paraćin and the south of Serbia - Dušan Bajatović, the Director General of "Srbijagas", said yesterday (May 18, 2009).

- Construction of the gas pipeline through Serbia will be carried out by means of project finance and credit debts of the joint venture of "Srbijagas" and "Gazprom", which plan to found a joint bank that would make financing of joint projects in Serbia significantly easier - said Bajatović, but he did not want to reveal any details of the plan for founding of that bank.

Construction of gas pipeline Južni Tok through Serbia will cost minimum 700m EUR - said Bajatović and added that, although the headquarters of the joint Serbian-Russian venture would be in Switzerland, none of the important decisions can not be made without the consent of the Serbian side.

Bajatović pointed out that that gas pipeline would put our country in much better geopolitical situation, which would make it possible for Serbia to increase production of electricity and become a regional center for distribution of gas and electricity.

Completion of "Južni Tok" in Serbia will enable adequate supply of gas to major cities: Beograd, Novi Sad, Niš and Kragujevac, and it would create the possibility for construction of gas power plants of cogenerative type, with the capacity of about 450 MW.

According to Bajatović's words, the deadline for final investment decision about construction of the gas pipeline through Serbia is 24 months from the day of signing of the contract, while the deadline for completion of works is December 31st, 2015.

At the energy summitt, which will be held in Sankt Peterburg at the beginning of June, "Srbijagas" and the representatives of "Gazprom" will talk about storing of commercial quantity of gas in Banatski Dvor, and this meeting will also be used for conversation about construction of another gas storage in Serbia, but of greater capacity than "Banatski Dvor".

Bajatović said that all tenders for "Banatski Dvor" would be finished during that week and that the storage for about 300m cubic meters of gas would be ready starting November, that is, starting from the next heating season. He pointed out that key gas pipeline section Gospođinci–Banatski Dvor would be completed prior to winter.

(Note: complete text is taken over from newspaper "Politika" of May 19th, 2009)

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