A Gazprom delegation led by Leonid Chugunov, Head of the Company's Project Management Department paid a working visit today to the Republic of Serbia.

As part of the visit the general shareholders meeting took place at South Stream Serbia AG, the joint project company of Gazprom and Srbijagas. The meeting adopted the final investment decision on the South Stream project.

“A year ago we commissioned South Stream's first facility – the Banatski Dvor underground gas storage that shaved gas consumption peaks in Serbia during anomalously cold weather. Transitioning to the investment stage at the Serbian section, ahead of all the other countries, will provide new opportunities for the national economy growth as well as secure a long-lasting benefit related to our participation in the project. According to provisional estimates, South Stream will create in Serbia approximately 2,200 workplaces and attract up to EUR 1.5 billion of direct investments,” said Leonid Chugunov.

 “It is a pleasure to us that the Republic of Serbia is the first South Stream member country to adopt the final investment decision. The project is within the schedule and enjoys full backing of our Government. We will be ready to start preparation operations for South Stream in Serbia soon. It is obvious that South Stream is a project of national significance and we are elaborating a relevant regulation on the project. Moreover, the project will assure energy security and additional budget revenues for Serbia, create the environment for new projects in the energy and chemical industries that will boost the inflow of investments and new jobs creation,” said Dusan Bajatovic, Director General of state-owned Srbijagas.

Background

In 2011 Gazprom supplied Serbia with 1.4 billion cubic meters of natural gas.

Srbijagas is a state-owned company dealing with natural gas transmission, distribution and storage in Serbia.

With a view to diversify the natural gas export routes Gazprom is implementing the project for construction of a gas pipeline running under the Black Sea to the countries of Southern and Central Europe – the South Stream project. Intergovernmental agreements were signed with Bulgaria, Serbia, Hungary, Greece, Slovenia, Croatia and Austria in order to implement the onshore gas pipeline section.

In January 2008 Russia and Serbia signed the Umbrella Intergovernmental Agreement for the South Stream project and the Banatski Dvor UGS project.

In November 2009 the South Stream Serbia AG joint project company was registered. Gazprom holds a 51 per cent stake in the company and Srbijagas – a 49 per cent stake.

On November 21, 2011 the Banatski Dvor UGS facility was inaugurated. It is one of the largest gas storages in Southeastern Europe. The UGS working gas volume makes up 450 million cubic meters, maximum deliverability – 5 million cubic meters per day. Besides, Banatski Dvor has a potential for further expansion. The UGS facility enhances the security of Russian gas export to Hungary, Serbia, Bosnia and Herzegovina.