Bajatovic: Extension of gas arrangement with Russia agreed, details to be worked out

Following the official talks between the presidents of Serbia and Russia in Moscow, the teams of Srbijagas and Gazprom continued the talks about specifying the new gas agreement. The current one expires in May, and the director of Srbijagas, Dusan Bajatovic, said for RTS that he believed that the next one could be signed for a period of ten years, but that the risks for both sides should be discussed.

Dusan Bajatovic pointed out that the two presidents had agreed about everything and that the continuation of the cooperation was agreed in essence and that details remain to be defined.

– It will be 2.5 billion, instead of two as has been the case so far on an annual level. Another important thing is that the quantity of gas is not a problem at all, as much as there is a problem of flexibility, because Serbia started consuming 18 billion cubic meters a day in the cold winter days. We will see how much that will cost – said Bajatovic.

Bajatovic says that the problem of flexibility is reflected in the transport capacity during cold days.

– Everybody would take a lot more. The Hungarians take 22 million every day and will continue buying in the coming years. There’s also Slovakia, we also have to help our colleagues to have adequate quantities. Everybody wants to be monetized, everybody wants to buy Russian gas, whatever they might say – emphasized Bajatovic.

Decade-long cooperation possible

As for the arrangement itself, Serbia is asking for ten years and the director of Srbijagas believes that its realization is possible, but that the risks for both sides should be discussed.

– They accept this and there is a very important question. Europe wants to ban Russian gas in 2027, but perhaps there will be some agreement between Russians and Americans. They question is what is the force majeure of our contract if we sign it for 10 years, for both us and the Russian side, so that they don’t get penalized because they can’t deliver it to us and so that we don’t get penalized because we can’t take it – explains Bajatovic.

Serbia currently has 76% of the Banatski Dvor storage site filled, and Bajatovic points out that it is kept for supply security in risky situations.

– The most important thing is that we have, in fact, started a formal expansion of Banatski Dvor – Bajatovic said and emphasized that the first borehole had been established.

Reserves to be spent only in urgent cases

The European storage sites are being filled for the next winter, and Serbia is also working hard on its own.

– At the moment, we are emplacing one million at a time due to technical reasons, because we have boreholes and some other operations that we are carrying out, which concern pressures in the site. Don’t worry, the reserves will be full and we will not spend them unless we have to – emphasized Bajatovic.

JP Srbijagas Novi Sad

PE Srbijagas Novi Sad

Gazprom

Dušan Bajatović

gas arrangement with Russia