Natural gas deliveries to Yugoslavia began in 1978. After the collapse of the Socialist Federal Republic of Yugoslavia (SFRY) in the early 1990s, separate Intergovernmental agreements on gas industry cooperation were signed with the new sovereign states.

A Russian-Serbian Intergovernmental Agreement was signed on February 7, 1995. To strengthen Gazprom’s position in the region, a new Russian-Serbian joint venture, Yugorosgaz (50% Gazprom-owned), was established in July 1996 under an Intergovernmental Agreement dated April 11, 1996. Yugorosgaz’s operations cover phased implementation of the construction plan for the southern branch of Serbia’s gas pipelines, gasification and gas supply to consumers in southern Serbia, and participation in joint energy projects. This company has been Serbia’s natural gas purchaser since 2007.

Transmission, distribution, and storage of natural gas within Serbia are handled by the state-owned enterprise Srbijagas, established on October 1, 2005 by the government of the Republic of Serbia in the course of restructuring the state-owned enterprise Naftna Industrija Srbije (NIS).

On October 13, 2012, Russia and Serbia signed an Intergovernmental Agreement on natural gas supply in 2012-2021, allowing gas supply to be increased to 5 bcm per year.

Based on an Intergovernmental Agreement dated March 27, 2013, Gazprom Export and Yugorosgaz signed a long-term contract for natural gas supply to Serbia until the end of 2021. As at January 1, 2017, a total of around 15.5 bcm of gas had been supplied under the contract with this company, including 1.75 bcm in 2016.

An Intergovernmental Agreement on the Banatski Dvor underground storage (UGS) project was signed on January 25, 2008. Banatski Dvor started operating in October 2011. The UGS has an active gas storage volume of 450 mcm, with maximum daily withdrawal productivity of 5 mcm. This storage facility guarantees reliable supplies of Russian gas not only for Serbia, but also for consumers in Hungary and Bosnia and Herzegovina.

On October 28, 2015, Gazprom and Srbijagas entered into a Memorandum of Understanding on possible cooperation deepening in underground gas storage, NGV sector and small-scale LNG shipments.

On June 3, 2017, Gazprom Export and Srbijagas signed a Memorandum to expand Banatski Dvor UGS facility. The document provides for the preparation of the technical and financial feasibility studies for the expansion of the UGS working gas capacity from 450 to 750 mcm.

On June 27, 2017, Gazprom and Serbian Ministry of Mining and Energy signed a roadmap to develop Serbia’s gas transmission capacities.

On December 19, 2017, Gazprom Export and Yugorosgaz signed an Addendum to the long-term Agreement on Russian natural gas supplies to Serbia. In accordance with the document, starting 2018, supply volumes under the current Agreement will be increased from 1.5 bcm to 2 bcm.

Related sections:

Nord Stream 2, Gas Transportation, Storage