Gazprom plans to supply the Republic of Srpska with Russian gas that will be delivered to Europe via Turkish Stream or TurkStream natural gas pipeline.
Gas-Res, a state-owned gas company of Republic of Srpska, should begin the first construction work regarding the Turkish Stream pipeline through the Republic of Srpska by the end of 2020 or the beginning of 2021.
The gas pipeline should run from Bijeljina to Novi Grad, parallel to the planned route of the Belgrade-Sarajevo highway.
The value of this project has not yet been accurately determined, but initial estimates suggest an investment of € 250 million to € 300 million.
The Director of Gas-Res, Ljubo Glamočić said that after it became clear that this pipeline will not experience the fate of the South Stream, activities to implement this capital energy project for Srpska were intensified.
He emphasized that the conceptual design of the project had already been done, and other documentation is likely to be completed by the middle of next year.
“We have a big and demanding job ahead of us, because we should solve the issue of expropriation of 5,500 lots through which the Turkish Stream pipeline is planned to go,” said Glamočić.
He pointed out that the decision to place the pipeline along the same route as the planned highway would greatly simplify things but also reduce the cost of this investment.
In the meantime, the Government of Srpska should decide on the selection of a strategic partner for this project. According to Glamočić, these will be the companies Gasprom and Srbija gas, with which Gas-Res should form a joint venture.
“I believe that the Government of Srpska will resolve this issue soon, and that this agreement will be signed soon. After that, we will define exactly how this project will be financed, and, I suppose by then, it should be clarified whether one branch of this pipeline will be extended to Zvornik and then further to Sarajevo. Also, it should be decided in which city centres the gas power plants will be built, “said Glamočić.
One of the certain locations is Banja Luka, which envisages the construction of a power plant, which should solve the issue of heating in this city in the long run, but also Prijedor, Bijeljina, Zvornik and Ugljevik are in play.
The gas from Russia should reach Srpska via Turkey, Bulgaria and Serbia.
The gas pipeline connection point should be between Mačvanski Prnjavor near Šabac and Novo Selo near Bijeljina.