BAJATOVIĆ: Cheap gas for commercial customers by the year's end

(Photo: mc.rs)

Prices of natural gas in Serbia will probably change by the end of the year, announced Dušan Bajatović, managing director of Srbijagas, on Wednesday 13 May.

This cut will come if the present trend of falling oil prices continues, said Bajatović to journalists at the Srbijagas stand at the international agricultural fair in Novi Sad.

He added that a fall of even about USD 220 per 1,000 m3 is expected in the third and fourth quarters of the year, which he explained will be good for the Serbian state that will pay less foreign currency for gas imports.

Bajatović said that according to the agreement with the IMF, there will no longer be any state subsidies, neither for Srbijagas nor for EPS.

“Thanks to last year's loan of USD 200m which practically repaid the old debts, we are following deliveries quite well these years, though there may be a small problem of current liquidity for filling the storage in Banatski Dvor, but I think we'll solve that with our friends from Gazprom”, said Bajatović.

Speaking of the largest gas consumers in Serbia, Bajatović said that the situation at Azotari Pančevo had largely been fixed, adding that he believes that company will not have a large loss in the first quarter of this year but that, if it comes to a loss, this will be “ironed out” in the Srbijagas accounts.

“The debt owed by the Železara steelworks has been frozen and they have begun to pay their current obligations as of 1 February. As for MSK, gas is still not being delivered”, said Bajatović, adding that a way is being sought for Petrohemija to pay through bartering with goods produced by Petrohemija for the needs of Srbijagas.

Translation provided by: www.halifax-translation.com