Serbia signs deal with Gazprom for new gas pipeline
Wed, 24 January 2007
RUSSIA’S Gazprom and Serbian government officials have signed an agreement to build a 400-km gas pipeline across Serbia, from its border with Bulgaria to the frontier with Croatia. Construction is planned over the next two years, with work in Serbia to begin in later this year, Serbian Economy Minister Predrag Bubalo said recently.
The pipeline will be designed to carry 20bn cum/yr of gas, primarily to supply the SE Europen region.
At the signing ceremony, Mr Bubalo said: "This deal offers numerous advantages for our country: we will no longer be at the end of the pipeline, and will not depend on countries through which it passes." Serbia anticipates income from the project in the form of transit fees, in addition to earnings from construction and maintenance of the pipeline, he added.
Gazprom and Serbia will now form a working group to examine and determine the final details of the agreement. Serbian Energy and Mining Minister Radomir Naumov, who signed the deal in Moscow, said that the southern Serbian city of Nis would be a "central gas point" for the project. "The pipeline should lead to a wide gasification of the southern and NE parts of Serbia, all the way to Kosovo – the Serbian province administered by the United Nations", Mr Naumov said. He went on to say that the pipeline would ultimately be linked to the Blue Stream pipeline, which runs from Russia to Turkey under the Black Sea.