The Serbia–Hungary oil pipeline is on track for completion by the end of 2027, as announced by Serbia’s Minister of Mining and Energy, Dubravka Đedovic. This development follows discussions with Hungary’s Foreign Affairs and Trade Minister, Peter Szijjarto. Anticipation surrounds the signing of construction contracts this summer, with work expected to commence in the autumn.
Minister Đedovic confirmed that critical preparatory measures are already underway. The technical documentation has been finalized, necessary permits have been secured, and the public procurement process for the Serbian segment is currently active. Additionally, authorities are considering a parallel product pipeline to facilitate the transportation of refined petroleum products in both directions, which would bolster supply resilience while maintaining operations at the Pancevo refinery. However, challenges have arisen in the tender process; Transnafta has temporarily halted procurement steps due to a formal complaint, prompting an extension of the bidding deadline from February 5 to February 26 and necessitating multiple amendments to tender documents for clarity on technical specifications.
Further discussions between Serbian and Hungarian officials have revolved around broader energy cooperation initiatives, including negotiations for a comprehensive intergovernmental agreement. Technical teams from both nations are engaged in aligning the agreement’s text, particularly concerning a potential transaction involving Serbia’s oil company NIS. Minister Đedovic emphasized the importance of safeguarding national interests given NIS’s pivotal role in securing crude oil and fuel supplies while supporting economic growth. Considerations include Serbia potentially acquiring a 5% stake in NIS and addressing matters related to the Pančevo combined heat and power plant and Petrohemija.
In addition to oil infrastructure developments, Belgrade is advocating for enhanced regional integration within electricity transmission networks. Projects are currently underway aimed at connecting high-voltage networks with neighboring countries such as Hungary, Romania, and Bosnia and Herzegovina.
Minister Szijjarto noted that Hungary’s MOL Group has significantly ramped up exports to Serbia to mitigate potential supply disruptions during winter months. He also indicated that NIS is poised to ship additional eurodiesel supplies to Hungary if required. Ongoing negotiations between Russian stakeholders and MOL regarding the sale of NIS involve consultations with U.S. authorities aimed at securing final approvals from both Serbia and Hungary.
