Contract signed: Serbia can store natural gas in Hungary

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A contract on gas storage in Hungary for the needs of Serbia has been signed.

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Announcements earlier said Minister of Finance of Serbia Sinisa Mali and Minister of Foreign Affairs and Trade of Hungary Peter Szijarrto would hold talks in Belgrade, after which they would sign a Memorandum of Understanding on continuation of cooperation in the field of energy between Srbijagas and MVM CEEnergy Zrt.

After signing the memorandum and the contract on gas storage in Hungary, Mali said that our country will store 500 million cubic meters of gas in two storage facilities in Hungary by October and that we will be able to withdraw gas in the period October-March.

"Serbia will store 500 million cubic meters of gas in two warehouses in Hungary by October, which will then be available to us from October 1 to April 1 next year," Mali said. According to the contract Serbia will be able to withdraw three cubic meters of gas per day in October, then from November to February six million, and in March, three million," said Mali.

That will be plenty for the needs of citizens and industry in Serbia, Mali stressed. He announced that the arrangement will be financed in part from the Serbian budget, and in part with a loan from OTP Bank and the Exim Bank of Hungary.

He added that the proportions of financing will be decided later.

Mali also did not want to say how much the arrangement will cost, but said that Serbia will pay 65.7 million euros to Hungary on Monday in order to reserve storage facilities.

The whole arrangement includes gas, electricity and crude oil, Mali added.

Minister Szijarrto assessed that these agreements provide uninterrupted gas supply to Serbia and strengthen Hungary's position in the field of energy in the entire region.

He added that the interstate agreement also means connecting the electricity markets of the two countries, so a new transmission line between Subotica and Sandorfalva in Hungary will be built by 2028.

This will increase the capacity between Serbia and Hungary from the current 1,000 megawatts of electricity to 1,500 megawatts. The contract on the purchase of natural gas and on storage and logistics services was signed by General Director of Srbijagas Dusan Bajatovic, and representatives of the Hungarian company.

The signing of the memorandum and the contract agreement were previously agreed by President of Serbia Aleksandar Vucic and Prime Minister of Hungary Viktor Orban.

(Telegraf Biznis)