Russian gas monopoly Gazprom said on September 16 it has agreed terms for gas supplies to Bosnia’s Serb Republic.
The agreement was signed with Bosnian company Gas Res during a visit to Moscow by the president of Bosnia’s Serb-run entity Republika Srpska (RS), Milorad Dodik, and the entity’s Prime Minister Zeljka Cvijanovic.
Gazprom said in a statement gas will be delivered to the Serb Republic from mid-2015 via existing pipelines until the launch of the South Stream pipeline branch on Bosnian territory.
The drafting of an intergovernmental agreement related to the construction of the South Stream pipeline is in its final stages, the statement said, adding that the pact would also cover expanding the use of gas in the energy sector.
On September 15, the government of the Serb Republic said Gas Res will buy gas directly from Gazprom – without any go-betweens – and will distribute it to customers on the entity’s territory, making cheaper supplies possible, SeeNews reported.
Cvijanovic said in the government statement that a memorandum for cooperation was also signed in Moscow with Russian state-controlled oil company Zarubezhneft. The company plans to convert its majority-owned oil refinery Rafinerija Nafte Brod in Bosnia to run on natural gas instead of fuel oil, Cvijanovic added.
Dodik said the intergovernmental agreement on South Stream should be signed in the coming 30 to 60 days.
The South Stream branch towards Bosnia is planned to split off from the section of the pipeline that will cross neighboring Serbia.
South Stream is Gazprom’s project aimed at constructing a gas pipeline with a capacity of 63 billion cubic metres to Southern and Central Europe for the purpose of diversifying the natural gas export routes and eliminating transit risks. The first gas will be supplied via South Stream in late 2015. The gas pipeline will reach its full capacity in 2018.
In 2012 Gazprom and Republika Srpska signed the Memorandum of Understanding, envisaging the possible construction of a gas branch from South Stream to Republika Srpska and gasification of the population centers along its route. The document also expresses the parties’ interest in the development of power generation projects, including the conversion of existing power plants in Republika Srpska to natural gas.
GAS RES is a gas company of Republika Srpska. It is focused on gas distribution and sale across the country.