Banatski Dvor expansion agreed upon - Gas price going down by 10% in 2016

an illustration (Photo: nostal6ie/shutterstock.com)

Srbijagas General Manager Dusan Bajatovic announced Thursday (1 October 2015) that an agreement had been reached with Gazprom to expand the underground gas storage Banatski Dvor, stressing that Serbia had enough gas for the forthcoming heating season.

The Serbian government will not have to provide additional guarantees and money for this project as it will be implemented through project finance, Bajatovic told the press conference occassioned by the 10th anniversary of Srbijagas. He noted that Srbijagas would remain a strategic partner of Russia's Gazprom.

As Srbijagas said in a release, the second phase of modernization of Banatski Dvor gas storage requires an investment of EUR 65 million without the construction of accompanying gas pipelines. After the expansion, the capacity of this storage should amount to 1 billion cubic meters, while production would be increased up to 10 million cubic meters per day.

Bajatovic also announced that the average retail price of gas in 2016 would be 10% lower and should amount to RSD 34 per cubic meter. Bajatovic said that gas price would be reduced if the Euro - Dollar exchange rate remained unchanged.