The Serbian government has formally awarded a significant contract for the construction of an oil pipeline that will connect Serbia and Hungary. The project, which is valued at approximately 148 million euros, is led by the consortium headed by MVM Juzna Backa. This initiative follows a procurement process that faced earlier suspensions and was later extended by the national pipeline operator, Transnafta.
This pipeline construction is viewed as one of the largest energy infrastructure investments in Serbia in recent years. The consortium also includes several local companies such as Konvar, Delta Inzenjering, Zavod za zavarivanje, Celik Backi Jarak, and Delta Preventing, with MVM Juzna Backa expected to undertake approximately 43% of the total contract work.
The tender process for this project was initiated towards the end of last year, with Serbian authorities highlighting its status as a project of national importance. The primary objective is to enhance the country’s energy security while diversifying its crude oil import routes.
At present, Serbia primarily relies on imports of crude oil through Croatia via the JANAF pipeline system. The new connection to Hungary aims to provide an alternative supply route through the Druzhba Pipeline network, which serves as a critical conduit for crude oil across Central and Eastern Europe. The planned pipeline is designed to transport REB crude, commonly known as Russian Export Blend.
The Serbian segment of this pipeline will commence near the Horgos border crossing adjacent to Hungary and extend southward toward the Transnafta terminal in Novi Sad. The route will traverse several municipalities including Kanjiza, Senta, Ada, Becej, and Zabalj, before culminating in Novi Sad.
This underground pipeline within Serbian territory is projected to span approximately 113 kilometers, with an anticipated annual transport capacity of around 5.5 million tons of crude oil. Serbian authorities regard this project as a strategic element in the country’s long-term energy infrastructure development plan and broader initiatives aimed at diversifying supply routes.
