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The Government of the Republic of Serbia

In the service of citizens

Main gas pipeline important for developing southern Serbia

Doljevac, 7 September 2010

Prime Minister Mirko Cvetkovic and Russian Ambassador to Serbia Alexander Konuzin today officially opened works on the construction of the first stage of the MG-11 Nis–Leskovac–Vranje main gas pipeline near the village of Kocane, close to Doljevac.

VIDEO: Mirko Cvetkovic opens construction of first stage of MG-11 gas pipeline

Cvetkovic underlined that the completion of this project will create possibilities for the gasification of southern Serbia, which will in turn help to make this region a more attractive investment target.

The Serbian government is quite keen on implementing more infrastructure projects since they are a legacy for future generations, the Prime Minister stressed adding that another significant point is that these projects create new jobs.

Cvetkovic voiced his pleasure at the fact that Serbian companies have been involved in the project from the very beginning, first in the drafting and equipment constructing processes, and now in the actual construction of the pipeline.

Ambassador Konuzin pointed out that Russia and Serbia have developed strategic cooperation in politics and culture, as well as in the military, stressing that they are now establishing a partnership in the energy sector as well.

Minister of Energy and Mining Petar Skundric declared that the project is part of the national gasification programme, which is also important for the environmental protection sector because the process of burning gas for heating does not involve any emission of sulphur or nitrogen oxides.

The government and the Ministry of Energy and Mining want the gasification process to be completed before the South Stream project is realised, in order to enter a new stage of a stronger development of Serbia, Skundric underlined, recalling that the South Stream project is one of the key strategic projects in the years to come.

Executive Director of Yugorosgaz Vladimir Koldin explained that the works in the first stage will concern the construction of a 52 kilometre section of the pipeline from Nis to Leskovac, noting that the investment is estimated at €16 million.

Koldin specified that the works should be completed by May 2011 when new consumers are to be connected to the pipeline.

General Director of Srbijagas Dusan Bajatovic noted that the gasification of southern Serbia will be implemented in a way envisaged by the national gasification plan and the interstate agreement between Serbia and Russia, based on which the Yugorosgaz company was set up in the first place.

He announced that over the next two years gas should become available to industry and households in southern Serbia.

Yugorosgaz is the carrier of the project to build the gas pipeline from Nis to Leskovac.

The first stage of the pipeline will enable the delivery of natural gas to Vranje, with connections to other residential areas along the way (Doljevac, Leskovac, Vlasotince, Vladicin Han, Surdulica, Vranjska Banja).

This way an energy basis will be created for further development of this region and possibilities will open to connect industrial facilities to the pipeline, as well as other consumers.

Having opened the works, Prime Minister Cvetkovic told the press that he expects the resolution submitted by Serbia to be adopted by the UN General Assembly on 9 September, however with the text of the resolution acceptable to the EU.

He voiced his hope that the resolution will open the door to negotiations on burning issues regarding Kosovo-Metohija.

The Prime Minister also underscored that the government is serious in its intent to solve the shortage of basic food items, noting that as for cooking oil, it is safe to say that the problem has already been resolved.

Citizens will be glad to hear that we have secured sufficient amounts of cooking oil from our commodity reserves and it will be supplied to shops within a day or two, the Prime Minister underlined, recalling that several domestic producers have announced that they will supply more oil to the market.