Focus on Energy, 2010 - Karanovic & Nikolic

RWE AGGerman company “RWE” has not yet established any formal presence in Serbia, although it has been involvedin intensive discussions with the Government about investment possibilities in the Serbian energysector. The result of these activities has been the execution of a memorandum of understanding betweenthe EPS and the Government envisaging the future cooperation between RWE and EPS on the constructionof the HPP “Djedrap III”, and the cascade HPPs on the river Morava and on the river Drina on Serbia’sborder with the Republic of Srpska.EFTThe “Energy Financing Team” is a company owned by private investors and is the largest trader of electricityin South East Europe.GAZPROM28The Russian company “Gazprom” is currently the single largest investor in the Serbian oil and gas sector.In 2009 its subsidiary “GaspromNeft” bought a 51% share in NIS, the largest oil company in the SoutheastEurope. It is involved in the exploitation, processing and sale of both oil and oil derivatives as well asthe production of natural gas. NIS’s exploitation capacities include 1 million tons of oil equivalents annually.Its processing capacities include two oil refineries, with one in Pančevo and one in Novi Sad. Thesehave a total processing capacity of 7.3 million tons annually. It manages the retail network for the sale ofoil derivatives in Serbia, consisting of some 480 sales outlets.FOCUS ON ENERGY“Gazprom” is now the major player in the planned gas expansion of Serbia. Through the company“Yugorosgaz” where it holds a majority 50% share (another 25% is held by “Srbijagas” and remainingshares are held by the “Austrian Central ME Energy & Gas GmbH”), it holds the concession for the constructionof the natural gas transportation system section from Niš to Dimitrovgrad which should connectthe Serbian gas transportation system to the Bulgarian natural gas transportation system.“Yugorosgaz” has also acquired the concession to construct the 123 km long natural gas transportationsystem from Niš to Prokuplje to-Priština which will allow it access to the gas market in Kosovo. After itfinalizes the Niš to Dimitrovgrad gas line, “Yugorosgaz” will be able to sell gas directly to customers in thesouth of Serbia, Kosovo and in Montenegro.So far, “Yugorosogaz” has completed the 62 km long section from Niš to Pojate. In addition it operates theparts of the distribution network that connect Niš, Ražanj, Aleksinac and Aleksandrovac. “Yugorosgaz” holds alicense for the trade of natural gas and holds a major share in the sale of natural gas imported from Russia.Finally, with “Srbijagas”, “Gazprom” will participate in the financing and construction of the Serbian sectionof the “South Stream” pipeline through Serbia, which is probably the single largest investment project inthe Serbian energy sector. The two companies have already established a joint company in Switzerland forthis purpose, where “Srbijagas” holds 49% of the shares and where “Gazprom” has a 51% shareholding.TELEFONIJA“Telefonija” a.d. is a Serbian company involved in, amongst other things, in the development of the naturalgas distribution network. To date, Telefonija has constructed a natural gas distribution network mostof which is located in the Vojovodina region, but it has plans to expand its gas distribution network toother regions in Serbia.RAFINERIJA NAFTE BEOGRAD“Rafinerija Nafte Beograd” is a company that produces oil derivatives. It currently operates as part of the“Neochimiki group”.