November 1 (SeeNews) - Gas prices in Serbia are set to drop by 3.6% as of December 1, local media reported on Friday, quoting the director general of state-owned gas monopoly Srbijagas.
The cheaper gas price comes as a result of the depreciation of the U.S. dollar, news agency Tanjug quoted Dusan Bajatovic as saying at a news conference in Belgrade.
Another local news outlet, B92, quoted Bajatovic as saying at the media event that the formal launch of the construction of the Serbian part of the South Stream gas pipeline is set to be held by the end of the year in the northern town of Kovilj.
Srbijagas should receive later on Friday the location permit for the local South Stream section while Bajatovic expects the first construction works to start in earnest towards the end of February next year.
The Serbian section of the South Stream pipeline will ultimately have an annual capacity of 40.5 billion cubic metres of gas while stretching for 422.4 kilometres. The Gazprom-spearheaded South Stream aims to diversify gas routes within the European Union and to provide stable gas supplies from Russia to Central and Southern Europe.
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