Azerbaijan plans to increase gas deliveries to Serbia as the two countries advance a proposed 350 MW power plant and 150 MW heat plant in Niš. Azerbaijani officials said higher volumes would accompany development of the project. The Niš facility is designed to supply both electricity and district heat.
Serbia currently receives up to 400 million cubic metres per year of Azeri gas, equivalent to around 15% of annual national demand of roughly 3 bcm. Existing arrangements include an option to raise deliveries to as much as 1 bcm/year starting in 2027.
Project company talks between EPS, Srbijagas and SOCAR
Serbian utilities EPS and Srbijagas have completed negotiations with SOCAR on establishing the project company. Signing is expected in the coming month. The project is positioned to expand supply flexibility in southern Serbia through combined electricity and district heating output.
Azeri volumes and Serbia’s alternative gas routes
For the gas market, the strategic value extends beyond the Niš facility. Serbia has historically depended heavily on Russian supply but is building alternative commercial and physical routes through the Bulgaria interconnector and access to southern gas corridors. Higher Azeri volumes would increase the practical value of those connections.
Gas-fired generation role alongside wind and solar expansion
The Niš plant would add dispatchable electricity capacity as Serbia expands wind and solar generation. Gas-fired generation can respond more quickly than coal, according to the project description. It may become increasingly valuable during evening scarcity or periods of low renewable output.
The development links Serbia’s gas diversification with its power-market transition, with a stated focus on whether the economics of Azeri gas and power-market revenues support the new plant without increasing exposure to imported fuel costs.
