The Serbian government has awarded a significant contract for the construction of an oil pipeline linking Serbia and Hungary to a consortium led by MVM Juzna Backa. This decision follows a procurement process that experienced delays, initially suspended before being extended by the local pipeline operator, Transnafta. The project represents a crucial step in enhancing Serbia’s energy infrastructure and security.
Valued at approximately 148 million euros, including VAT, this pipeline is poised to be one of the largest recent investments in Serbia’s energy sector. The consortium also includes several Serbian firms: Konvar, Delta Inzenjering, Zavod za zavarivanje, Celik Backi Jarak, and Delta Preventing. MVM Juzna Backa is expected to undertake the majority of the work, contributing around 43% of the total contract value.
The tender for this project was initiated late last year, with Serbian authorities emphasizing its national importance in the procurement documentation. The pipeline aims to bolster the country’s energy security while diversifying its crude oil import routes. Currently, Serbia predominantly relies on imports via Croatia through the JANAF pipeline system.
The new connection with Hungary is strategically designed to offer an alternative supply route through the Druzhba Pipeline network, which facilitates crude oil transport across Central and Eastern Europe. The pipeline will specifically be configured to handle REB crude, commonly referred to as Russian Export Blend.
Geographically, the Serbian section of the pipeline will commence near the Horgos border crossing adjacent to Hungary and extend southward towards the Transnafta terminal located in Novi Sad. Its route will traverse several municipalities, including Kanjiza, Senta, Ada, Becej, and Zabalj before arriving at Novi Sad.
Spanning approximately 113 kilometers, this underground pipeline is anticipated to have an annual transport capacity of around 5.5 million tons of crude oil. Serbian officials regard this project as a vital element of the nation’s long-term energy infrastructure strategy and a key initiative in efforts to diversify supply channels.
