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Serbia advances €1 billion gas-network expansion with World Bank backing

Serbia is preparing a gas-infrastructure programme valued at approximately €1 billion, with the first investment expected to fund the initial section of the Niš-Velika Plana pipeline. The programme is being developed with support from the World Bank. Officials said the early scope is focused on the first pipeline segment.

Programme scope and planned network upgrades

Work on the programme includes measures intended to modernise Serbia’s transmission network. It also aims to strengthen institutional capacity and improve regional interconnection. Further phases are expected to add additional pipeline sections, compressor stations and expanded underground storage.

The Niš-Velika Plana corridor is designed to improve how supply entering Serbia through cross-border interconnections is integrated into the domestic system. It is also intended to strengthen links between southern and central parts of the country. Existing network limitations can constrain access for industrial consumers and municipalities in those areas.

Transit role, supply flexibility and diversification context

Mining and Energy Minister Dubravka Đedović said the programme could support Serbia’s ambition to become a regional gas-transit centre. She noted that higher throughput could generate potential transit revenue. She also pointed to increased supply flexibility and improved access in southern and eastern Serbia as more immediate benefits.

The investment aligns with a broader diversification strategy for Serbia’s gas system. The system has historically relied on a limited number of supply routes and high dependence on Russian gas. An interconnector with Bulgaria enabled access to the Southern Gas Corridor and LNG entering through Greece, but domestic infrastructure needs reinforcement before diversified supply can be distributed efficiently across the country.

Storage, compression and project preparation financing

Storage expansion is described as a parallel priority within the programme. Additional underground capacity would allow purchases during lower-price periods, support strategic reserves and help cover short-term interruptions. Compressor investment is expected to increase operational flexibility and enable higher volumes between border points and domestic demand centres.

The government plans to set up a working group involving the Ministry of Mining and Energy, Gas Infrastructure, Transportgas, Srbijagas and other public bodies. The group will coordinate project preparation ahead of formal approval by the World Bank for financing. The financing structure will need to balance security-of-supply objectives with uncertainty around long-term demand.

The approach will also need to account for potential changes in consumption as new users connect to the network. At the same time, European decarbonisation policy may limit growth beyond the next decade. Pipeline sizing, tariff design and contracted capacity are expected to influence whether the programme delivers durable infrastructure returns or results in underused assets.

Capital priority within Serbia’s energy investment envelope

The €1 billion envelope places gas infrastructure alongside electricity networks and renewable integration as a major capital priority. The first pipeline section is intended to test whether Serbia can translate regional transit ambitions into an operationally coherent and financially disciplined network programme.

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