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Further connection of Serbia and Hungary is in sight - Serbia Business

Further connection of Serbia and Hungary is in sight

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The Minister of Mining and Energy of Serbia Dubravka Đedović said today that Serbia and Hungary have agreed to sign an agreement on the construction of the Hungary-Serbia oil pipeline and an agreement on the establishment of a joint enterprise for energy trading owned by „Srbijagas“ and the Hungarian company MVM.

In Budapest, Đedović spoke with the Hungarian Minister of Foreign Affairs and Trade, Peter Szijjártó, about cooperation between the two countries in the field of energy and new joint projects for which agreements will soon be signed, the ministry announced.

“At today’s meeting, we agreed to sign two agreements that will soon be signed at a joint session of the two governments. The first agreement relates to the construction of the Hungary-Serbia oil pipeline, which will enable greater security of crude oil supply. For that project, the preparation of design and technical documentation has begun , and the estimated value of the investment is around 100 million euros. The second concerns the establishment of a joint enterprise for energy trading owned by Srbijagas and the Hungarian company MVM,” said Đedović.

She added that the contract for the lease of gas storage in Hungary for the needs of Serbia has already been extended. “There is also talk about increasing the storage capacity in Hungary for the needs of our country before the next heating season,” Đedović said.

The minister pointed out that Serbia and Hungary have a strategic and partnership relationship, “based on the excellent relations between Serbian President Aleksandar Vučić and Hungarian Prime Minister Viktor Orbán”, which, as she stated, is particularly evident in the field of energy, above all when it comes to gas supply and oil, and more and more electricity.

“With the construction of the Balkan Stream gas pipeline, Serbia has positioned itself as an important transit country, and we are considering additional short-term capacities for Hungary’s needs, and with the construction of the Serbia-Bulgaria gas interconnection we will have additional capacity, but also access to alternative sources of gas. This is also Important for the security of supply our citizens and the economy, especially in anticipation of the coming winter when there will be a big fight for energy sources,” said Đedović.

The minister said that the value of electricity trade between the two countries last year was 77 million euros and that the plan is to further connect the two countries in the power sector.

“With the construction of the Pannonian Corridor for the transmission of electricity, which should be completed in the next five years, we will respond to the need to increase cross-border capacity. The value of the investment is around 107 million euros, and for more efficient implementation, the project will be declared a project of public importance,” she said.

She also emphasized that she supports Hungary to join the regional electricity exchange, which Slovenia has already joined together with Serbia. She explained that this is significant due to the establishment of the intraday electricity market, which is important due to the auctions for market premiums for RES producers, the launch of which is planned in May.

Hungarian Minister Peter Szijjártó said that energy supply in Europe is facing difficulties due to the war in Ukraine and that Serbia and Hungary are already working on harmonizing preparations for the coming winter.

“The issue of providing energy sources is also a security issue, and strategic cooperation in the field of energy is a guarantee that the supply of our countries will be ensured,” said Szijártó.

He thanked Serbia for the safe gas transit through which up to 10 million cubic meters of this energy source reaches Hungary every day and said that Serbia can also count on gas storage capacities in Hungary in the next heating season.

“We are also interested that, when the interconnection between Serbia and Bulgaria is completed, we procure additional quantities of gas from Azerbaijan through this pipeline. The security of gas supply is a European issue and the EU should provide financial resources for the construction of infrastructure in Southeast Europe, including in Serbia, through that Europe also gets access to alternative sources of gas,” said Szijjártó, the ministry announced.


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