Srbijagas, Gazprom Agree to Raise Capacity of Banatski Dvor Gas Storage

Serbian state-owned gas monopoly Srbijagas has reached an agreement with Russia's Gazprom to raise to 1.0 billion cu m the capacity of the Banatski Dvor underground gas storage, Srbijagas director general Dusan Bajatovic said.

The Banatski Dvor UGS facility, located in northwestern Serbia, was formally launched in November 2011. The development of the project for the facility - with a working gas capacity of 450 million cu m and peak deliverability of 5.0 million cu m per day, was part of a deal for the acquisition by Gazprom Neft of 51% of Serbian oil monopoly NIS clinched in 2009.

Bajatovic said in a statement issued on Thursday that the price tag for the expansion of the underground gas storage is seen at 65 million euro ($73 million), excluding the cost of related gas pipeline infrastructutre. He added that the upgrade will be funded with project financing.

Source: SeeNews