New annex to gas contract with Gazprom by June 30

Serbia’s contract on the supply of Russian gas expires at the end of the month, and as confirmed from St. Petersburg, the new contract should be extended for three months. Global natural gas prices have jumped by 50 to 70% since the escalation of the conflict in the Middle East, depending on the market. The price in Serbia is determined based on the oil formula, and the current price for our country is around EUR 290 or USD 320 per 1,000 cubic meters. This price is secured by long-term contracts with the Russian gas giant Gazprom. The price is calculated nine months in advance, which prevents sudden jumps due to the current war in the Middle East, and if we were to buy the same gas on European stock exchanges (TTF), it would cost more than USD 690. Since August last year, the price of oil (which is the basis of the gas formula) has increased from USD 67 to 87 to 95 per barrel. There is a growth of about 15 to 20% compared to the same period last year.

The new gas price for Serbia will be known in 15 days when the exact amount of gas price increase will be calculated using the oil formula. Although the purchase prices are different, the state, through Srbijagas, evens out these differences on the market, so that a mixture of both gases is delivered to all households in our country at the same, single tariff approved by the Energy Agency of Serbia.

Ministarstvo rudarstva i energetike Republike Srbije

Agencija za energetiku Republike Srbije

JP Srbijagas Novi Sad

Transnafta ad Pančevo

MVM Južna Bačka doo Novi Sad

MOL Serbia d.o.o. Beograd

MOL Hungarian Oil and Gas Budapest

Ministry of Energy

Energy Agency of Serbiz

Gazprom

Srbijagas