Serbia is expected to extend its natural gas supply agreement with Russia for an additional three months, with the new arrangement scheduled to be signed before the end of June. The decision is linked to heightened volatility in global energy markets, with tensions in the Middle East cited as a driver. Serbia’s extension is also taking place alongside work on gas storage and diversification projects.
Gazprom pricing and tariff structure
Even as natural gas prices have risen sharply on international exchanges, Serbia continues to rely on a long-term contract with Gazprom. The import price is set using an oil-indexed formula with a time lag, which authorities say helps limit immediate exposure for consumers. Current estimates place the import price at around €290 per 1,000 cubic meters, below prevailing levels at European gas trading hubs.
A revised gas price for the next period is expected to be established in the coming weeks, reflecting movements in global oil prices. Authorities also state that domestic consumers pay a unified tariff approved by the Energy Agency, regardless of differences in import costs across supply sources. The approach is intended to keep consumer charges consistent despite changes in upstream pricing.
Russian supply extension and heating-season preparations
The Ministry of Mining and Energy said extending the Russian supply agreement is needed to maintain security of supply. Authorities continue to monitor developments in international energy markets as the extension period approaches. The ministry also confirmed that preparations for the upcoming heating season are progressing according to plan.
In parallel, Serbia is expanding its underground gas storage infrastructure at Banatski Dvor. Four of the planned twelve new wells have already been completed. Discussions are also underway on additional storage capacity in Hungary for the 2026/27 winter season.
Azerbaijan gas cooperation and SOCAR volumes
Alongside Russian supplies, Serbia is strengthening cooperation with Azerbaijan. While commercial details of the agreement with SOCAR remain confidential, Azerbaijani gas is described as an important diversification source. Contracted volumes currently reach up to 400 million cubic meters per year.
The contracted volumes could increase over time, with potential expansion toward 1 billion cubic meters annually. Authorities frame the development as part of broader diversification efforts while monitoring market conditions. The ministry did not provide further details on timing for any volume increases.
Serbia–Hungary oil pipeline preparation
Serbia is also preparing construction of the Serbia–Hungary oil pipeline, described as a project intended to diversify crude oil supply routes. The government considers the pipeline strategically important after earlier supply disruptions highlighted risks from reliance on a single import corridor. The Ministry states that implementation is proceeding as planned.
A contractor has already been selected for the Serbian section of the pipeline project. Officials emphasized that strengthening energy diversification remains a priority regardless of future developments in European sanctions policy or changes in regional oil and gas flows.
