SARAJEVO (Bosnia and Herzegovina), December 18 (SeeNews) – Russia's Gazprom SPG will build a 70 million euro ($82.5 million) liquefied natural gas plant in Zvornik, in the north-eastern part of Bosnia's entity the Serb Republic, in cooperation with local peer Gas-Res, the entity's president said.
Gas-Res and Gazprom SPG signed a deal on Saturday to set up a joint venture to head the project, the office of the Serb Republic's president Milorad Dodik said following the signing ceremony.
The joint venture will be launched in January and headquartered in Banja Luka. Its majority owner will be the Russian firm, which is tasked with finding a financial partner and providing the technology necessary for the plant's construction, the office of the president said.
The LNG plant will run on gas coming from Russia.
"This is a pilot project, and as far as we know, this energy will be several times cheaper than energy used now for heating and electricity," Dodik is quoted saying.
Zvornik is a city on the Drina river in the north-eastern part of the Serb Republic, one of two entities that make up Bosnia and Herzegovina. The other is the Federation.
($=0.8484 euro)