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The Government of the Republic of Serbia

In the service of citizens

Contracts on construction of distribution gas pipelines throughout Serbia signed

Belgrade, 17 January 2007

The Serbian Ministry of Energy and Mining signed today in Belgrade seven contracts on the construction of distribution gas pipelines throughout Serbia. The projects will be funded with €14 million from the National Investment Plan.

Author: Fonet

Serbian Minister of Energy and Mining Radomir Naumov said after the signing that construction of these pipelines will allow nearly 90,000 households access to a gas supply.

He said that €4.1 million will be set aside for distribution gas pipeline Uzice-Cajetina-Zlatibor and Cajetina and Zlatibor measurement stations whereas €3.5 million will be allocated for distribution gas pipeline Krusevac-Trstenik-Vrnjacka Banja and Trstenik measurement station.

According to Naumov, gasification of Loznica will cost €2.9 million, Uzice distribution pipeline €2.76 million, whereas Milosevac and Markovac pipelines will each cost €450,000 and Pozega pipeline €339,000.

Naumov said that the National Gasification Plan stipulates the gasification of 400,000 households in Serbia by 2015.

According to him, there are nearly 190,000 gas consumers in Serbia at the moment, only 1,000 of which are industrial facilities, and gas is mainly used for heating. There are 250,000 potential gas users, he added.

The Minister also said that 14% of Serbia’s energy needs are satisfied by gas and added that the share should increase to 20% by 2020.

Representatives of companies that will build the gas pipelines Projektmontaza, Interklima and Jedinstvo Sevojno said that the Uzice-Zlatibor line should be finished by the end of the year whereas the deadlines for Krusevac-Vrnjacka Banja line 310 days and Velika Plana line 67 days.

Assistant Minister for the sector of public companies Milutin Prodanovic said that the construction of the gas line will start in the first or second quarter of this year and added that deadlines for their completion are short.

He announced that the Energy Agency will make public the maximum price of connection fitting per household which should not exceed €700.

According to him, after choosing strategic partners, local self-government will create conditions for the price to be between €150 and €200, down from the current price of €1,000.