Serbia discussing gas contract extension with Gazprom on same terms, would like more flexibility
MOSCOW. Sept 27 (Interfax) - Serbia is discussing an extension of the current contract on the same terms with Gazprom , Srbijagas chief Dusan Bajatovic told journalists on the sidelines of the Russian Energy Week forum.
"I think that the terms will remain the same and there will be no changes. I expect TurkStream will continue to operate. And I do not see us modifying the terms of the contract. The most important issue before us is the additional volumes that we need. I expect the strategic partnership between Serbia and Russia to continue in full, this is our national interest," he said.
"Serbia receives gas at the best price in Europe. And Serbia is very grateful to Gazprom, and particularly to your president, Vladimir Putin, who agreed on this with our president, Aleksandar Vucic. It enables our industry to develop intensively. Serbia has had the best GDP growth in Europe for four years in a row. Our growth was 3.4% in the first six months, the highest growth in Europe for the six months, and it will be the same until the end of the year," Serbian International Cooperation Minister Nenad Popovic told the Rossiya 24 TV channel.
"Our contract expires in March, and your president, Vladimir Putin will soon talk to President Vucic about a new contract from 2025 to 2028. And we expect to get the best gas price again," Popovic said.
Dusan Bajatovic said that he expects the details of the new agreement to be finalized during the St. Petersburg International Gas Forum in October: "I expect an agreement will be reached at the gas forum. The signing format is not that important," he said.
Bajatovic said there was a growing seasonal discrepancy in consumption as the market developed and that supply flexibility was becoming especially important. "There is a big difference between consumption in summer and winter. Supply flexibility is the most important thing for southeastern Europe. Storage facilities in Serbia and the EU are full, but you cannot only rely on underground gas storage facilities for gas supplies. They must cover peak demand, and supplies must be uniform," he said.
In recent years, peak consumption in the country has risen from 12 million to 17 million cubic meters per day due to the development of industry and the ongoing gasification of private households. "This must be ensured, it is not that easy," Bajatovic said.
The current contract calls for 6 mcm of gas to be supplied per day to Serbia.
Serbia consumed 2.8 billion cubic meters of gas in 2023, Bajatovic said.
Russian natural gas has been supplied to the region since 1978. Gazprom's main partner in Serbia is the state-owned Srbijagas. Gazprom started supplying gas to Serbia via a new route, the TurkStream offshore gas pipeline, since 2021.