HomeNews Serbia EnergySerbia advances Hungary oil pipeline environmental review, €131 million procurement

Serbia advances Hungary oil pipeline environmental review, €131 million procurement

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Environmental impact assessment submitted for pipeline section

Serbian pipeline operator Transnafta has submitted an environmental impact assessment for a proposed crude-oil pipeline between the Hungarian border and Novi Sad, moving the project into a critical permitting phase. The submission places the Serbian segment within an ongoing environmental review process alongside construction preparation, land access and procurement.

The planned alignment would start near the Horgoš border crossing and continue through Novi Sad and the municipalities of Kanjiža, Senta, Ada, Bečej and Žabalj. From the route’s end at Transnafta’s Novi Sad terminal, crude could enter the domestic network supplying the Pančevo refinery.

Second import corridor via Hungary and Druzhba system

The pipeline is intended to provide Serbia with a second crude-import corridor through Hungary and the Druzhba system. Serbia currently relies on deliveries through Croatia’s JANAF pipeline, creating concentration risk tied to a single cross-border route.

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In December 2023, the Serbian government designated the Hungary-Serbia pipeline as a project of national importance. The strategic case has strengthened since then as sanctions, ownership questions and geopolitical tensions have complicated regional oil logistics.

Environmental documentation requirements for crossings and impacts

The environmental documentation indicates that most of the alignment will cross agricultural land, forests and water-management zones. Trenchless or buried crossings are expected at rivers, roads, railways and existing infrastructure.

The assessment is required to address soil disturbance, groundwater protection, spill containment, construction waste, habitat fragmentation and emergency response. These elements form part of the permitting work linked to the proposed alignment between the Hungarian border and Novi Sad.

Tendered Serbian construction package and supervision delays

Transnafta has selected a consortium led by MVM Južna Bačka to construct the Serbian section following a tender launched in December 2025. The combined estimated value of construction and supervision procurement is approximately €131 million, excluding VAT.

Progress on construction supervision has been slower after Serbia’s Commission for the Protection of Rights in Public Procurement annulled part of the supervision tender. The annulment delayed appointment of an independent control function needed for continuous verification during construction activities.

Construction verification needs for buried pipeline integrity

Pipeline construction requires ongoing checks including welding verification, non-destructive testing, coating, trench preparation, pressure testing, cathodic protection and reinstatement. The project’s documentation also notes that advancing construction without a fully mobilised supervision structure would create quality and evidence risks.

The documentation further states that defects in buried pipelines become significantly more expensive to correct after backfilling. It also highlights that incomplete inspection records can undermine operating permits, insurance coverage and future integrity management.

Dependence on Hungarian section and crude availability in connected system

The project depends on completion of the Hungarian section and on commercially and legally accessible crude within the connected system. While a completed Serbian pipeline would add physical optionality, it would not automatically ensure supply volumes or compatible crude quality.

The project’s role is described as diversification infrastructure rather than a full replacement for JANAF deliveries. Maintaining access to both routes is presented as a way to provide Serbia greater negotiating leverage and reduce consequences from an outage or political disruption affecting either corridor.

Permitting timeline alongside procurement and commissioning steps

The environmental process is running in parallel with construction preparation, land access and procurement activities for the Serbian segment. The €131 million programme is linked to supply-security value through coordinated permitting, cross-border commissioning and independent evidence that the completed pipeline meets required integrity and environmental standards.

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