Serbia is expected to extend its natural gas supply agreement with Russia for an additional three months, with the updated arrangement scheduled to be signed before the end of June. The decision follows heightened volatility in global energy markets linked to escalating tensions in the Middle East. The extension is also taking place as Serbia expands storage and diversification-related projects.
Gazprom contract pricing and domestic tariff arrangements
Serbia continues to rely on a long-term contract with Gazprom, even as natural gas prices rise sharply on international exchanges. The import price is set using an oil-indexed formula with a time lag, which authorities say helps limit immediate exposure for consumers. Current estimates place the import price at around €290 per 1,000 cubic meters, below levels prevailing at European gas trading hubs.
A revised gas price for the next period is expected to be established in the coming weeks, reflecting movements in global oil prices. Authorities also state that domestic consumers pay a unified tariff approved by the Energy Agency. This tariff applies regardless of differences in import costs across supply sources.
Azerbaijan gas volumes and SOCAR contract details
In parallel with Russian supplies, Serbia is strengthening cooperation with Azerbaijan. The commercial terms of the agreement with SOCAR remain confidential. Azerbaijani gas is described as an important diversification option within Serbia’s supply mix.
Contracted volumes are currently set at up to 400 million cubic meters per year. Serbia expects potential expansion toward 1 billion cubic meters annually in the future, subject to developments under the agreement.
Storage expansion and heating-season preparations
The Ministry of Mining and Energy said extending the Russian supply agreement is necessary to maintain security of supply. Authorities also continue monitoring developments in international energy markets. The ministry further confirmed that preparations for the upcoming heating season are progressing according to plan.
Work to expand the Banatski Dvor underground gas storage facility is ongoing. Four of the planned twelve new wells have already been completed. Discussions are also underway on additional storage capacity in Hungary for the 2026/27 winter season.
Serbia–Hungary oil pipeline project implementation
Serbia is preparing construction of the Serbia–Hungary oil pipeline, described as a project intended to diversify crude oil supply routes. The government considers it strategically important following previous supply disruptions that highlighted risks from reliance on a single import corridor. The Ministry says implementation is proceeding as planned.
A contractor has already been selected for the Serbian section of the pipeline. Officials emphasized that strengthening energy diversification remains a priority regardless of future developments in European sanctions policy or changes in regional oil and gas flows.
