Serbia has moved closer to launching one of its most strategically important energy infrastructure projects in recent years after state pipeline operator Transnafta proposed awarding the construction contract for the Hungary–Novi Sad oil pipeline to a consortium led by MVM Južna Bačka.
The project, valued at approximately RSD 14.5 billion excluding VAT, or roughly RSD 17.4 billion including VAT, covers the construction of a new oil pipeline stretching from the Hungarian border near Horgoš to the Novi Sad terminal. The winning consortium also includes Konvar, Delta inženjering, Zavod za zavarivanje, Čelik and Delta preving.
The infrastructure will connect Serbia directly to the Hungarian oil transport system linked to the Druzhba pipeline, creating an alternative crude supply route at a time when regional energy security and sanctions-related supply diversification have become increasingly important.
The pipeline emerges amid broader uncertainty surrounding the ownership and future positioning of Naftna Industrija Srbije, as negotiations involving MOL Group, the Serbian government and international regulators continue under pressure from sanctions compliance requirements linked to Russian ownership exposure.
From an investor and energy-security perspective, the Hungary–Serbia oil interconnection represents far more than a conventional pipeline expansion. Serbia currently relies heavily on crude flows connected to Croatian transit infrastructure and Adriatic routing exposure. The new northern corridor potentially reduces geopolitical concentration risk while increasing optionality in crude sourcing, logistics management and refinery supply flexibility.
The project also reflects a broader regional trend in Central and South-East Europe where governments are accelerating cross-border energy infrastructure investments covering oil, gas and electricity interconnections. Energy security considerations have intensified following volatility across European gas and oil markets, sanctions-related disruptions and increasing pressure on states to secure independent and diversified import routes.
For Serbia, the pipeline may also strengthen Novi Sad’s role as a regional energy logistics node while supporting longer-term ambitions to position the country as a wider South-East European energy transit and trading hub. The development aligns with recent statements from Serbian energy officials emphasizing regional interconnection, infrastructure resilience and diversification of strategic supply routes.
Construction activities are expected to proceed along the full Horgoš–Novi Sad corridor, including expansion works at the Novi Sad terminal itself. According to previously disclosed plans, the Serbian section of the oil pipeline is expected to extend for slightly more than 100 kilometers.
