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Serbia initiates tender for new pipeline to enhance crude oil supply diversification

In a strategic move to strengthen its energy security, Serbia has launched a public tender aimed at constructing a new cross-border pipeline that will connect Hungary to Novi Sad. This initiative, spearheaded by the state-owned pipeline operator Transnafta, encompasses both the construction and technical oversight of the project.

The new pipeline is envisioned as a vital infrastructure investment that will help mitigate Serbia’s current dependence on a singular import route. At present, all crude oil entering Serbia is channeled through Croatia via the JANAF pipeline, which has been identified by Serbian authorities as a potential long-term supply vulnerability.

Once completed, this pipeline will facilitate crude oil deliveries from Hungary, which serves as a significant transit hub for the Druzhba pipeline system—responsible for transporting Russian Export Blend crude across much of Europe. This infrastructure is specifically designed to accommodate this type of oil and aims to diversify Serbia’s inflow routes.

The proposed route on Serbian soil will commence near the Horgoš border crossing and conclude at Transnafta’s oil terminal in Novi Sad. The underground segment of the pipeline is projected to span approximately 113 kilometers, with an anticipated capacity of handling up to 5.5 million tons of crude oil annually. The planned path will traverse several municipalities, including Kanjiža, Senta, Ada, Bečej, Žabalj, and Novi Sad itself, incorporating necessary facilities for safe operations.

While specific details regarding the contract value remain undisclosed in the tender documents, preliminary estimates suggest that the cost for constructing the Serbian segment could reach as high as €157 million. Bidders interested in participating in this project are required to submit their proposals by 5 February.

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