Construction of "Južni tok" in Serbia in 2011

Deputy President of Russian "Gazprom" and Chief Executive of "Gazprom export", Aleksandar Medvedev, said that the route of gas pipeline "Južni tok" through Serbia would be known in the second half of year 2009.

- As far as "Južni tok" is concerned, our calculations are that the construction of the gas pipeline section that goes trough Serbia should start in 2011, at the latest, and the first delivery of gas is expected in 2013 - Medvedev announced.

- We expect that the preliminary study on feasibility of the project will, most probably, be finished prior to the end of year 2008. The route of the gas pipeline section on the territory of Serbia will be determined on the basis of the project feasibility study, and special company will be formed for that purpose. Certain time is required for both - said Medvedev.

He said that the date of takeover of NIS had not been specified and that the plan was that the contract was signed by the end of the year.

According to the words of Medvedev, modernization of NIS and takeover of gas pipeline are separate projects and it would be wrong to condition realization of one of them with the previous implementation of the other one.

- Besides, the agreement signed between Russia and Serbia is complex and it includes agreements related to both projects. Therefore, priority realization of NIS project does not mean that we will not fulfill obligations from the project for construction of gas pipeline - he pointed out.

Medvedev said that the existing calculations anticipated completion of current stadium of construction of underground gas storage Banatski Dvor prior to year 2010, but, in order to be certain, some additional information was required.