Programme scope and initial pipeline section
Serbia is preparing a gas-infrastructure programme valued at approximately €1 billion, supported by the World Bank. The first investment is expected to cover the initial section of the Niš-Velika Plana pipeline. The project is being prepared to modernise Serbia’s transmission network, strengthen institutional capacity and improve regional interconnection. Later phases are expected to add further pipeline sections, compressor stations and expanded underground storage.
The Niš-Velika Plana corridor is designed to improve integration of supply entering Serbia via its cross-border interconnections. It would also strengthen links between southern and central parts of the country, where existing network limitations can affect access for industrial consumers and municipalities.
Transit role and supply flexibility
Mining and Energy Minister Dubravka Đedović said the programme could support Serbia’s ambition to become a regional gas-transit centre. She noted that higher throughput could generate potential transit revenue. The more immediate economic benefit cited was increased supply flexibility and improved access in southern and eastern Serbia.
The initiative aligns with a broader diversification strategy for Serbia’s gas system. Historically, the system has relied on a limited number of supply routes and has had high dependence on Russian gas. An interconnector with Bulgaria created access to the Southern Gas Corridor and LNG entering through Greece, but domestic infrastructure needs reinforcement before diversified supply can be distributed efficiently across the country.
Storage, compressors and project coordination
Storage expansion is described as a key element of the plan. Additional underground capacity would enable Serbia to buy gas during lower-price periods, maintain strategic reserves and cover short-term interruptions. Compressor investment is also expected to increase operational flexibility and support higher volumes moving between border points and domestic demand centres.
The government intends to form a working group involving the Ministry of Mining and Energy, Gas Infrastructure, Transportgas, Srbijagas and other public bodies. The group will coordinate project preparation ahead of formal World Bank approval for financing.
Financing considerations amid demand uncertainty
The financing structure will need to balance security-of-supply objectives with long-term demand uncertainty. Industrial gas consumption could rise as new users connect to the network. At the same time, European decarbonisation policy may limit growth beyond the next decade.
Pipleline sizing, tariff design and contracted capacity are expected to influence whether the programme delivers a durable infrastructure return or results in underused assets. Serbia’s €1 billion envelope places gas infrastructure alongside electricity networks and renewable integration as a major capital priority. The first pipeline section will serve as an initial test of converting regional transit ambitions into an operationally coherent network programme.
