Serbian president Aleksandar Vucic said on July 3, 2017, that Serbia could generate a revenue of up to 150 million euro ($171 million) annually from transit fees if Bulgaria builds the gas hub Balkan near the Black Sea port of Varna.
«There will be branches connecting us to Bosnia's Serb Republic, Bosnia and Herzegovina and Croatia, » RIA Novosti quoted Vucic.
Serbia needs to build a gas pipeline to the future interconnector at the Bulgarian border to transport a total of 9.8 billion cubic metres of natural gas and could rely on support from Russia, Vucic also said.
The Serbian government said in March the gas link with Bulgaria should be completed by 2019 and become operational a year later.
In January, Bulgaria signed a MoU with Serbia for the construction of the 150 km pipeline that will link the gas transmission systems of the 2 countries.
In February, Bulgarian gas transmission system operator Bulgartransgaz said it will receive 920,000 euro in EU financing to prepare a detailed feasibility study on the construction of the gas hub Balkan.
The facility has the potential to connect all main gas transmission projects in Southeast Europe and to ensure transparent and non-discriminatory access of European clients to large suppliers, Bulgartransgaz said back then.
Gas can be fed into the hub from Russia, from Bulgaria's potential gas deposits in the Black Sea or, via interconnectors with Greece and Turkey, from the Caspian region or the Eastern Mediterranean, or from the Greek and Turkish LNG terminals.
The gas hub could also be supplied via an interconnector with Romania, which is estimated to have significant deposits in the Black Sea shelf.
Landlocked Serbia imports 82% of the gas it needs from Russia through a pipeline crossing Hungary and Ukraine - its only source of natural gas supply.
The rest comes from domestic sources.