The city of Leskovac, located in southern Serbia, is advancing its ambitious gasification program, which is now valued at €86.8 million excluding VAT. This expansion follows the signing of an annex by local authorities, marking a significant increase in the project’s financial commitment, which is entirely backed by the state-owned gas company Srbijagas.
The newly updated agreement broadens the project’s scope and establishes a completion timeline of four years. The Serbian construction firm Rasina Energogas continues to play a pivotal role as the main contractor and strategic partner tasked with executing the necessary infrastructure works.
The initial contract for this gasification initiative was finalized in September 2023, with Srbijagas serving as both the investor and financial overseer. This arrangement ensures that the company not only provides full funding but also supervises project implementation in line with technical and regulatory standards, effectively positioning the Serbian state as the sole financier of this critical infrastructure project.
<pAuthorities in Leskovac have characterized this gasification initiative as one of the most impactful infrastructure and environmental investments in the region. The project aims to mitigate air pollution while simultaneously reducing heating expenses for households, businesses, and public institutions by facilitating broader access to natural gas.
<pSeveral key facilities have already been integrated into the gas network during earlier phases of this project, including the city's two largest boiler plants and the General Hospital, which had previously been identified as a significant contributor to local pollution levels.
<pThe recent annex adds approximately €28 million excluding VAT to the overall project budget. Concurrently, preparations are underway to select a site for a future metering and regulation station, which will be essential for the ongoing development of the expanding gas distribution system.
