A new long-term gas agreement with Russian company Gazprom is set to be signed next month, extending the current contract for Russian gas supply to Serbia until the end of October. Dušan Bajatović, director of Srbijagas, told RTS that gas prices for households will not increase, and any potential cost difference from higher gas prices for distributors will be covered by Srbijagas.
Bajatović noted that negotiations on the new gas deal with Gazprom are not yet complete. He explained that while talks are concluding this week, the agreement will not be signed in September but in October. In the meantime, the existing deal will be extended under the same terms, including the oil-linked pricing formula and additional volumes.
The director emphasized that the contract is affected by potential new European Commission sanctions on Moscow and Russian companies, but these are unlikely to impact gas transported via the Turkish Stream pipeline. Serbia has also arranged supplies from Azerbaijan of up to 2.5 million cubic meters per day and about 9.5 million cubic meters from Russia, alongside storage at Banatski Dvor, which holds 780 million cubic meters of gas (half Russian-owned, half Serbian). Additionally, Serbia will have access to 200 million cubic meters in Hungary.
Storage levels and winter supply
Bajatović highlighted that Serbia’s gas storage is over 90% full, compared to more than 80% in Europe. While overall European reserves may be insufficient for the winter heating season, Serbia’s supplies are considered adequate, though some price increases may result from the oil-linked formula. He reiterated that households will not face higher gas prices, and any cost increases for distributors will be absorbed by Srbijagas.
Gas reserves
According to Bajatović, Serbia has enough reserves to cover at least three months of supply. Currently, 60% of the necessary winter gas volume is secured through market supplies, with production at Banatski Dvor limited to 5–6 million cubic meters per day. Additional gas from Hungary and Azerbaijan will ensure safe supply for three to five months.
Regarding recent U.S. sanctions on Serbia’s oil industry, Bajatović said President Aleksandar Vučić has requested talks with U.S. officials, emphasizing the importance of bilateral discussions given the political nature of the sanctions.
