Serbia negotiates gas from Azerbaijan

Serbia is negotiating with partners from Azerbaijan on the amount and prices of gas that will be received through the Serbia-Bulgaria gas interconnection, the Ministry of Mining and Energy confirmed for Demostat.

Demostat reports the Ministry’s statement that Serbia could receive that gas as early as next year and adds that Serbia is also considering the possibility of reserving a certain gas capacity in the LNG terminal for liquid natural gas in Alexandroupolis, Greece.

The construction of the Serbia-Bulgaria gas interconnector, which should enable the diversification of supply sources, greater energy stability and free Serbia and the region from dependence on Russian gas, will be completed before the start of the new heating season, i.e. by the fall of this year, assure Demostat sources from the Energy Community.

To Demostat’s questions whether Serbia already has signed agreements or an agreement with new suppliers and from which countries the gas will come, the Ministry of Mining and Energy replied that discussions are ongoing with partners from Azerbaijan about the quantity and prices of gas, “which Serbia could to receive from next year”.

Demostat reminds that the general director of Srbijagas, Dušan Bajatović, said in mid-March that Serbia has already reserved 300 million cubic meters of gas in the LNG terminal for liquefied natural gas in the Greek port of Alexandroupolis.

The Ministry reminds that with the completion of the construction of the Serbia-Bulgaria gas interconnection, Serbia will get the opportunity to connect with gas sources that reach Greece, including gas from Azerbaijan and the Caspian region and the LNG terminal in Greece, and that terminal can receive gas from all over the world. so Qatar, Norway or American companies could be among the suppliers, according to Demostat sources from the Energy Community.

The gas interconnector should change the energy picture of the entire region, which is heavily dependent on Russian gas.

When it comes to Serbia, gas accounts for about 13% of primary energy consumption, and currently it can enter the country only through two points – from Bulgaria near Zaječar via the Balkan Stream gas pipeline (part of the Turkish Stream, a joint project of Russia and Turkey), and from Hungary.

Serbia is dependent on Russian gas, which is delivered through the Turkish Stream – from Russia, under the Black Sea, via Turkey and Bulgaria, and buys it at a preferential price, while the remaining, small part of the gas, is bought on the market at market prices.

The goal of the European Union is energy diversification, especially after the war in Ukraine began, which is why some EU countries have freed themselves from dependence on Russian gas or are on the way to do so, writes Demostat.

Through the IPA funds, the EU allocated EUR 49.6 million in grants for the gas interconnector project, the total value of which is EUR 85.5 million.

Serbia provided the rest of the money through a loan from the European Investment Bank, and EUR 15 million and EUR 7.5 million were allocated from the budget for preparatory work and design.

The total length of the Serbia-Bulgaria gas pipeline through both countries will be 170 kilometers and it will be two-way along its entire length.

The gas pipeline in Serbia will be 109 kilometers long and will be able to transport 1.8 billion cubic meters of natural gas per year.

As announced, the new gas pipeline will provide an additional 60% increase in capacity compared to Serbia’s current annual needs, which amount to around three billion cubic meters of gas per year.

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