Formation of a joint company with “Gazprom” expected in June

General director “Srbijagas”, Sasa Ilic, estimated yesterday (May, 12th, 2008) that it was most probable that in June there would be formed a joint company with “Gazprom”, which should be undertaking projects planned by the energy agreement between Russia and Serbia.

At the press conference, in Novi Sad fair, Ilic said that the contract about formation of a joint company of “Srbijagas” and “Gazprom” was already prepared, but that nothing would move before May, 25th.

- I expect that annex of the agreement will be signed, in order move the data for formation of the mixed company, and that all planned activities will be normally continued. I believe the final date for that would be June, said Ilic.

He stressed out that construction of the main gas pipeline “South line” had great significance for the energy industry of Serbia, and he added that underground storage of natural gas in Banatski Dvor was prepared for taking in gas, and that technical tests were in the process, to make that possible.

- We are expecting that the gas will be inserted so the job could be finished by the end of the year, and that in the next season we could use 30 mil cubic of gas, instead of imported quantities. On the contrary, we might miss another heating season, said Ilic.

The advisor of the general director for investments, Srdjan Kostovic said that the first phase of storage construction gives space for 300 millions cubic meters of gas, and that after finalization of works storage capacity would be 800 millions cubic meters.