"Integral Montage" and "AG Equipment" to gas storage "Banatski dvor" for 9.4m EUR

Public company "Srbijagas" signed the contract today (November 9, 2009) for purchase of compressors and assembling of the gas production line for completion of the first phase of the underground gas storage in Banatski Dvor.

The Director General of "Srbijagas", Dušan Bajatović, said to the press that the realization of the contract with US company "AG Equipment" on delivery of compressors would result in the increase in the natural gas injection capacity of the storage to 3.8m cubic meters per day.

- The deadline for delivery of compressors is 200 days, and the whole project worth 7.4m USD will be financed by "Srbijagas" - said Bajatović.

According to his words, the contract with Austrian company "Integral Montage" will enable daily production of 5m cubic meters of gas in the gas storage in Banatski Dvor, and the delivery and installation of equipment will cost about 2m EUR.

Bajatović reminded that the first phase of construction of the underground gas storage in Banatski Dvor would be finished by the end of the year and enable storing of about 300m cubic meters of that fuel and daily production of 5m cubic meters of gas, which was enough to satisfy about 50% of Serbia's overall needs in the winter period.

According to his words, about 250m cubic meters of gas have been stored to the date, while the construction of eight borings is underway. That will be followed by the works on collection of gas with the equipment that will be delivered and installed by the companies with which the contract was signed today.

- The existing line will not be disassembled, but reconstructed, and we are going to increase its capacity to 2m cubic meters of gas per day - Bajatović said and specified that that meant that the daily capacity of the storage would amount to 7m cubic meters of gas.

The CEO of "Srbijagas" said that the construction of two-way gas pipeline Banatski Dvor-Gospođinci was close to end because the pipes would be laid under the surface of the Tisa river in 15 days, which would connect Banat's and Bačka's sides of the gas pipeline.

By signing the contract with company "Foldgaz Trade", "Srbijagas" has ensured the purchase and storing of 200m cubic meters of natural gas in a gas storage in Hungary.

The contract is in effect since November 1st, and it will remain in effect prior to April 10, 2010, for which the banking guarantee of about 30m USD and the deposit of 11.9m USD have been provided.

Bajatović said that the financial aspects of the contract were very favorable and that the price of gas was insignificantly higher than the current purchase price of commercial gas. The contract can be extended for two more years, which is guaranteed by the Government of Hungary.