Government to adopt plan for Srbijagas at the next meeting

At the next meeting, the Government of Serbia will adopt the reorganization plan for Srbijagas, the minister of mining and energy, Aleksandar Antic, announced.

He said to parliament members at the Assembly of Serbia that Srbijagas will become vertically integrated company with split energy activities in the ownership sense which will enable more efficient business.

Antic said that budget 2015 does not contain guarantees for additional debts of Srbijgas and new gas procurements.

As he explained, the Government of Serbia, with IMF, through the World Bank and the European Bank for Reconstruction and Development (EBRD), is finishing the plan of financial stabilization for EPS and financial consolidation for Srbijagas which should define principles for setting up new ways of these companies’ functioning.

He reminded the Government adopted the EPS reorganization program.

Antic outlined that in 2015, gas will not be delivered to companies which cannot pay it but that the Government of Serbia is working on model of how these companies should function in these circumstances.

He said that the Government, with the agreement with the Oil Industry of Serbia, succeeded in providing for 2015 and 2016 for Petrohemija 50 m cubic meters of gas, extracted from domestic findings at the price of USD 280 for 1.000 cubic meters.

Antic said it is about 60% of their annual gas demands at the price some 40% lower than the one they are paying now.

The minister of mining and energy, Aleksandar Antic, outlined it will enable economic gas price to Petrohemija and remunerative business.