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Thursday, 08 January, 2009, 23:50 GMT | more >>

Serbia and Russia seal pipeline deal



By Upstream staff 

Serbia and Russia's Gazprom have agreed all the details of a a deal on building a gas pipeline running from Bulgaria through Serbia and Croatia to Italy, Economy Minister Predrag Bubalo said today.

Serbia said in July it had agreed in principle with Gazprom on the cross-country project worth more than $800 million.

"We finally harmonised the memorandum of understanding with the Russian side and and we expect it will be signed around 20 December," Bubalo told a news conference, Reuters reported.

"This will be a big project, a greenfield investment."

The memorandum of understanding was reached between the government, Serbia's gas monoply Srbijagas and Gazprom's export arm Gazpromexport, Bubalo said.

"This way we will get a big investment and ensure a parallel gas supply route," Bubalo said.

During the winter season, Serbia consumes around 10 million cubic metres of gas a day. It traditionally relies on Gazprom supplies with the gas arriving via Ukraine and Hungary.

Sources familiar with the plan told Reuters the pipes would have a capacity of 20 billion cubic metres and the Serbian segment would ultimately be linked to the Bluestream pipeline running from Russia to Turkey under the Black Sea.

Like most European countries, Serbia faced gas shortages last winter due to a spat between Gazprom and Ukraine over transport fees. The government said at the time that it would find alternative delivery routes.


Thursday, 16 November, 2006, 23:36 GMT  | last updated: Thursday, 16 November, 2006, 23:36 GMT

Balkan chill: the Gazprom pipeline will boost Serbia's domestic gas supplies, as well as serving as a transit route to Italy
 

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