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Serbia: Kragujevac launches €44 million citywide gasification project

A new framework agreement valued at 44 million euros has been signed to expand the natural gas infrastructure throughout the city of Kragujevac in central Serbia. The project will be implemented by local company DM Invest in partnership with state-owned gas utility Srbijagas as part of a comprehensive gasification program.

Mayor Nikola Dasic emphasized the importance of the initiative, noting that while initial efforts to build gas networks began in the 1980s, this marks the first full-scale rollout across the entire municipality. He highlighted the project’s strategic importance for upgrading local infrastructure and its potential to significantly reduce air pollution by replacing outdated individual heating systems. The entire investment will be financed by Srbijagas, ensuring that all urban neighborhoods and surrounding villages are connected to the natural gas network.

Srbijagas Director Dusan Bajatovic announced that preparatory work will begin within ten days. He pointed to the recent successful gasification of the Stellantis and Siemens factories—projects worth 6 million and 2 million euros, respectively—as examples of progress. Bajatovic also revealed plans for an additional 8 million euros investment to reroute pipelines for the city’s upcoming bypass road and another 2.5 million euros to improve the existing distribution network.

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