Gas Supply under Contract in BiH

by Cristian Florescu

As an importer of gas for the Federation of Bosnia and Herzegovina (FBiH), Energoinvest did not receive any request from Gazprom Export regarding the payment of gas in rubles, write Sarajevo Times

The price of gas is formed quarterly. The contract that Energoinvest d.d. Sarajevo has with Gazprom Export was signed in 1997 and has no expiration date. All significant changes to the substance of the contract are defined in the annexes.

”Currently, gas from Russia is delivered according to the agreed quantities and dynamics, and we have no indications that there will be any disruptions with gas deliveries. The last annexe is valid until June 1st this year,” stated Energoinvest.

They explained that the price of gas is formed quarterly and is calculated according to a formula that is largely based on the price of oil on the stock exchanges in the last nine months. As the price of oil is constantly rising, so is the price of gas.

Limited possibility of purchasing gas from other countries

”TurkStream” gas arrives in BiH from Russia through Turkey, Bulgaria, and Serbia. Some analysts these days have expressed fears that there could be problems when it comes to transporting gas through Bulgaria.

”That is a question we cannot answer. If that happened, and it would happen solely on the basis of European Union (EU) pressure on its member, it would be a political decision, then the whole of the south-eastern part of the Balkans and the part of Europe supplied with gas by this stream would be left without gas supply, which would entail some consequences of a legal nature. According to our information, that option is not realistic at the moment,” they stated from Energoinvest.

Because of the configuration of gas networks in Europe, as well as our gas network, which is extremely small, as they added from this company, the possibility of purchasing gas from other countries is very limited.

”Due to the current situation and gas needs of all European countries, many gas producers use gas primarily for their own needs. Everything that is exported is at a significantly higher price than we have, and the transport of that gas through the gas network of Europe is limited due to various leases for the transport of gas through the countries through which such gas passes. In the event of a complete cessation of gas supplies to the entire region, and based on the decision of Russia’s partner Gazprom, all the countries of the Southeast Balkans could jointly try to find a new supplier, but at a much higher price,” they pointed out from Energoinvest.

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