Niš project links higher Azeri gas volumes with new generation
Azerbaijan plans to increase gas deliveries to Serbia as the two countries advance a proposed 350 MW power project and a 150 MW district heat plant in Niš. Azerbaijani officials said higher volumes would accompany development of the project. The facility is designed to provide both electricity and district heating for southern Serbia.
EPS and Srbijagas have completed negotiations with SOCAR on establishing the project company, with signing expected in the coming month. The Niš plant would add dispatchable electricity capacity alongside Serbia’s expansion of wind and solar generation. Gas-fired output is described as able to respond more quickly than coal during periods of evening scarcity or low-renewable supply .
Azeri supply levels and potential increase from 2027
Serbia currently receives up to 400 million cubic metres per year of Azeri gas, equivalent to around 15% of annual national demand of roughly 3 bcm. Existing arrangements include an option to increase deliveries to as much as 1 bcm/year from 2027. Higher Azeri volumes would be tied to the Niš development schedule.
The gas-market implications extend beyond the immediate supply volumes. Serbia has historically depended heavily on Russian gas but is building alternative commercial and physical routes through the Bulgaria interconnector and access to southern gas corridors. Additional Azeri volumes would increase the practical value of those connections .
Power-market transition and fuel-cost exposure question
The Niš project combines a new gas-fired generation component with district heating, aligning with Serbia’s broader shift in its power mix. Dispatchable capacity is positioned as relevant during times when wind and solar output are lower. Gas-fired generation is described as offering faster response than coal in such conditions.
The central question for the project is whether the economics of Azeri gas and power-market revenues support the new plant without increasing exposure to imported fuel costs .
