Parties Agree Need for Energy Cooperation in Balkan Market

BELGRADE, Serbia, May 30, 2014 /PRNewswire/ --

An express appeal for the need for gas competitiveness and diversification in the region was heard today at a roundtable in Belgrade by key business and energy experts. Hosted by the Serbian Chamber of Commerce, representatives of Bulgarian and Hungarian Chambers of Commerce, Natural Gas Europe, agreed that there was a need for more active cross-border cooperation that would facilitate a dialogue between various authorities on a local and regional level, and the business community on energy matters in the Balkans.

Natural gas has an important role in addressing the critical challenge of competitiveness that will increasingly touch upon all Europeans, including Serbia and therefore, moving forward, the region's energy strategy needs to focus on competitiveness.  This needs to include placing a higher priority on energy efficiency and emissions targets need to be balanced or benchmarked against European competitiveness.

Zeljko Sertic, President of the Serbian Chamber of Commerce and Industry, made the point that a new approach was needed, asserting that the Chamber had already begun work on the idea of a Balkan Energy Initiative, intended to promote dialogue between neighbouring countries and work as a coordinating organisation to improve policy development in the Balkans region.

Sertic said that building consensus between international organisations, governments, businesses, and communities was key as well as ensuring the country's safe and stable energy sector. He made the point that such an approach needed to be driven by business and business organisations. "In our view the Balkans Energy Initiative would have an important role to play in supporting businesses of all sizes to benefit from investment in energy infrastructure. Chambers of Commerce, in their capacity of representing the best interests of business, are the natural starting place to begin this initiative, but it should also be open to a range of stakeholders, including individual businesses and civil society organisations. We have begun the process of building support for the idea, with a letter of intent, and we will discuss the proposal further in July in Vienna."

Martin Sipos, Head of International Department for Energy, Ministry of National Development of Hungary, further emphasized the need cooperation between Hungary and Serbia. He agreed that the Hungarian presidency of the V4 is keen to continue this as there is a reason to pursue creating a gas forum and ensuring a debate on supporting regional cooperation. Vasil Todorov, Secretary General of the Bulgarian Chamber of Commerce Bulgarian Chamber of Commerce commended coordinated more efficient work in regional projects an stressed that ''amid the international  issues, we cannot let these overshadow the business aspects in Eastern Europe. Constructive conversation in enhancing the Balkan energy market is essential.'’

The topic of the South Stream project and its impact on the region as a whole was reflected by Rick Gill, Managing Director of Natural Gas Europe who emphasized the importance of facilitating increased gas flows to the Balkan region. Mr Gill. A poll undertaken by Natural Gas Europe in conjunction with research and strategy consultancy WorldThinks surveying the views of the public and key stakeholders in each participant country on the project's potential impact showed significant support for South Stream. Serbians spoke strongly in favour of the pipeline project, with 73% in favour and only 3% indicating opposition.

The potential beneficial effects of South Stream were apparent to survey respondents, not just in terms and increased supply security, but overall economic benefits such as job creation, taxes and transmission fees.

Gazprom Deputy Head of the Projects Sector, Alexander Siromyatin discussed how the South Stream project will enable finding new gas routes for supply for Europe - first initiated in 2007 the 422km long pipeline will pass through the Black Sea to Bulgaria, Serbia, Hungary, Slovenia and Italy providing a total CS power of 225 Megawatts. From 2012 South Stream has been realized in full capacity and it was stressed that following Nord Stream (the first gas pipeline linking Russia to Europe), it will be a logical continuation for South Stream to connect users and suppliers.

Sertic asserted that given the Balkans unique geo political position, as a key crossroad in the market of offer and demand it was important to ensure that the proposed new initiative (BEI) is open to all governments and organizations that want to participate in the discussion to solve the issues at hand.

He said that the BEI will shows its strength by linking the governments in the region and informing the public on key issues in the energy sector, as well as the future of Eastern Europe's energy strategy. "There is a need for a collective voice - should work together to discuss the most important economic aspects of the market."

SOURCE Serbian Chamber of Commerce