State Gas Company GM: Russian Gas Deal Will likely Be Extended for another Six Months

Dusan Bajatovic (BETAPHOTO/MILOS MISKOV)

Dusan Bajatovic, general manager of state natural gas company Srbijagas, on Feb. 10 said that the contract on Russian gas delivery, expiring at the end of March, would be likely extended for another six months, stressing that Serbia would have enough gas by the end of this heating season. 

Speaking to state public broadcaster RTS, Bajatovic said that Russian gas had been delivered in line with a long-term contract “which is occasionally annexed,” but underlined a number of problems – from European sanctions to payment operations.  

“As of March, daily deliveries of Russian gas will be reduced due to large reserves. Until October, they will be practically around six, instead of 10 cubic meters per day, because we cannot further fill up the underground storage Banatski Dvor,” Bajatovic said, adding that the facility currently had 400 million cubic meters of gas.  

Bajatovic further said that natural gas was being traded at higher prices than the amount paid by Srbijagas. “We pay EUR270 for 1,000 cubic meters, while this morning, gas was traded for EUR350,” Bajatovic noted. He stressed that gas prices for households would not go up, while they would slightly increase for businesses, because more quantities of gas had been obtained on the exchange for to ensure energy security. 

He also said that delivery of larger amounts of gas from Azerbaijan short-term was not realistic, while 500 cubic meters of gas was being considered under collective procurement of gas with the EU, but added that “no one has responded” so far.