Dušan Bajatović, the director of Srbijagas, assured that Serbia will have enough gas and electricity to meet its needs throughout the upcoming winter. He also emphasized that the price of gas in Serbia remains the most favorable in Europe and that there will be no price hikes for residential consumers.
In an interview with RTS, Bajatović explained that the price of gas for industry will remain similar to the current rates, which range between $75 and $85 per barrel of Brent oil. He confirmed that Serbia’s gas supply is stable, with the country securing 13 million cubic meters of gas per day. This includes 6 million cubic meters from existing sources, an additional 2 million from recent negotiations with Russian companies, and a further 5 million cubic meters added to Serbia’s supply. Furthermore, Serbia has an additional 380 million cubic meters stored at the Banatski Dvor facility and 163 million cubic meters in Hungary.
Regarding Europe’s energy situation, Bajatović stated that the continent remains heavily reliant on gas for both heating and powering gas-fired power plants, which account for at least 20% of electricity consumption. He also pointed out that gas consumption has risen in European industry, and while gas prices in Europe have increased by 16%, they are expected to reach $450 per 1,000 cubic meters by the first quarter of 2024.
Bajatović also highlighted that Europe faces significant energy challenges, with supply limitations and a reliance on foreign gas. He noted that countries like Japan are not restricting the import of American gas, while Europe, particularly Germany and Poland, is moving back to coal as a primary energy source.
As for Serbia’s energy security, Bajatović assured that the country’s price stability is supported by a favorable purchasing formula, with 63% of Serbia’s gas bought according to the oil formula. He also stressed that the energy situation in Europe remains precarious, and Serbia’s supply is secure.
Addressing concerns about unpaid debts at four heating plants in Vrbas, Jagodina, Senta, and Bečej, Bajatović reassured that gas will not be cut off to these facilities, even though they are in debt. He emphasized that Srbijagas will continue to supply energy to essential services such as hospitals and kindergartens, regardless of contracts or overdue payments. He acknowledged that local governments have been irresponsible in managing their finances, leading to over-indebtedness. Despite this, Srbijagas is financially stable and will not resort to cutting off supply.
On the expansion of the Banatski Dvor gas storage facility, Bajatović stated that the project is moving forward, with the installation of four new compressors, 12 new wells, and a new production line. The goal is to increase storage capacity by one and a half billion cubic meters over the next three years.
Finally, Bajatović mentioned that there are over 70,000 people waiting for a gas connection in Serbia, but the challenge lies in the shortage of skilled workers to carry out these connections. Training programs are being developed to address this workforce gap.
