Dušan Bajatović, the director of Srbijagas, emphasized the importance of Gazprom’s agreement for additional gas deliveries until May next year. He assured that Serbia has sufficient gas reserves to handle any severe winter conditions, stating, “We have the necessary quantities of gas to manage all peak demands. Even during extremely cold days, citizens should feel secure as we have enough supply.”
Bajatović noted the challenges posed by Ukraine’s decision not to extend its gas transit agreement with Russia, which expires on December 31. This situation has led to a rush toward the Turkish Stream for gas transport. However, he expressed confidence that both Srbijagas and Gazprom are in a strong position.
He remarked on the favorable gas prices, which are significantly lower than market rates, while also indicating that escalating conflicts in the Middle East could impact oil and gas prices. “Should the conflict escalate, it could lead to oil supply issues and higher prices, affecting gas prices as well,” he said.
Despite potential fluctuations in oil prices, Bajatović predicted that gas prices would remain stable. He explained that the pricing formula in Serbia adjusts slowly, based on a nine-month calculation. “Even with an increase in oil prices, I don’t expect our purchase price to exceed $350 per unit. In unfortunate scenarios, it could reach $370, but that’s still $100 cheaper than market prices,” he concluded.
