The gas storage facility will be located at one of the Itebej gas fields in northern Serbia, and will have a capacity of up to one billion cubic meters. It will be used for both strategic and commercial purposes, with Srbijagas as the sole operator.
As part of the project, the EBRD will also finance the rehabilitation of 40% of Serbia’s gas distribution network. In addition, a part of the EBRD funds will be used to refinance Srbijagas’ short-term loans, which will enable the company to improve its capital structure and free up resources for capital intensive projects aimed at connecting Serbia’s gas transmission network with those of the neighbouring countries.
This is the third gas storage project financed by EBRD. In 2009 the bank provided EUR70m to Plinacro to acquire a gas storage facility in Croatia and EUR200m to MOL for completion of the construction of an underground gas storage in Hungary. EBRD is currently considering financing in 2010 for gas storage projects in Bulgaria and Moldova.
