Serbia Weighs its Options for Gas

Serbia needs several sources of gas supply, and at the moment all available options are being considered, seeking those that could realize soonest. Seeming as the most certain is the interconnection Nis-Dimitrovgrad, as that way Serbia would connect to the "Turkish stream” gas line, via Bulgaria. Also analyzed is the possibility of connecting to the Trans-Adriatic line, which Prime Minister Aleksandar Vucic has recently discussed with Azerbaijani officials

After the cancelation of the "Southern stream” gas line by Russia, the countries supplied by the Russian gas are facing a problem, especially since the announcement that the section through Ukraine will be closed by 2019. Therefore, other options for the supply are sought. Russia has immediately offered the new "Turkish stream” gas line, and it was recently specified that the plan is to transport the gas from Russia, through Turkey, to Austria. Consequently, the countries that would stand on that line are Greece, FYROM, Serbia and Hungary. The realization of the project is entrusted to the Gazprom company, and its leaders claim it will be fully in line with the EU standards, i.e. in harmonized with the Third Energy Package. Having in mind that the construction of the "Southern stream” was abandoned exactly due to the disputes between Russia and the EU about the adherence to the European standards, the announcement from Gazprom should make sure that similar problems are avoided. The Serbian Government has stated that this gas line would be an acceptable option, but the question of its financing has been raised.

Another option, mentioned these days during Prime Minister Vucic’s visit to Azerbaijan, is that Serbia might join the Trans-Adriatic line. According to Vucic, it is important that Serbia be connected to that line, as it would enable the diversification of the sources of supply, hence ensuring the energy stability. In the talks with the Azerbaijani state oil company SOCAR it has been agreed to form a commission that would establish Serbia’s needs for gas supply from Azerbaijan, and then analyze the building of a section that would connect Serbia to the Trans-Adriatic line. Being that this line also passes through FYROM and Greece, it means that by building a single gas line branch Serbia might get the supply from both Azerbaijan and Russia.

Also planned is the construction of the interconnection with Bulgaria, and the two countries have signed the contract on that project in 2010, but the lack of finances has prevented its realization so far. The European Commission has recently announced the possibility of setting a special fund to finance this project, since it is significant for several countries. That is supported by the fact that Bulgaria and Azerbaijan have an agreement on cooperation, which means that this section could be connected to the lines that bring in the gas from both Russia and Azerbaijan. The line Nis-Dimitrovgrad-Sofia requires around 120 million euro, and Bulgaria has already provided the assets for their section, while the branch through Serbia should be financed from the EU funds.

Besides providing the finances for the multiple gas sources, another burden is the time pressure. Namely, it is important that all those gas lines be completed in the next three and a half years, when the section through Ukraine will be shut down, since the countries of the western Europe and Balkans are supplied through that line reports Radio Srbija.

(source: Balkans.com)