The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the Company's Management Committee and Dusan Bajatovic, Director General of state-owned Srbijagas.

The parties discussed the issues of bilateral cooperation in the energy sector and long-term natural gas supplies.

The meeting paid special attention to the progress with South Stream and underlined the importance of granting the national significance status to the project in Serbia.

Background

Gazprom supplies natural gas to Serbia on the basis of annual supplements to the contract effective from 2006. Gazprom is expected to supply Serbia with some 1.5 billion cubic meters of gas in 2012.

Srbijagas is a state-owned company dealing with natural gas transmission, distribution and storage in Serbia.

With a view to diversify the natural gas export routes Gazprom is implementing the project for construction of a gas pipeline running under the Black Sea to the countries of Southern and Central Europe – the South Stream project. In January 2008 Russia and Serbia signed the Umbrella Intergovernmental Agreement for the South Stream project.

In October 2009 Gazprom Export, Gazprom Germania and Srbijagas signed the Agreement on setting up a joint venture for the Banatski Dvor UGS facility.

In November 2009 the South Stream Serbia AG joint project company was registered. Gazprom holds a 51 per cent stake in the company and Srbijagas – a 49 per cent stake.

On November 21, 2011 the Banatski Dvor UGS facility was inaugurated. It is one of the largest gas storages in Southeastern Europe. The UGS working gas volume makes up 450 million cubic meters, maximum deliverability – 5 million cubic meters per day. Besides, Banatski Dvor has a potential for further expansion. The UGS facility enhances the security of Russian gas export to Hungary, Serbia, Bosnia and Herzegovina.

On October 29, 2012 the General Shareholders Meeting of South Stream Serbia AG, the joint project company of Gazprom and Srbijagas, approved the final investment decision for the South Stream project in Serbia.