The Serbia–Hungary oil pipeline project is on track for completion by the end of 2027, with key developments expected in the coming months. Serbia’s Minister of Mining and Energy, Dubravka Đedovic, announced that construction contracts are anticipated to be signed this summer, with actual work slated to commence in the autumn. This announcement follows discussions with Hungary’s Foreign Affairs and Trade Minister, Peter Szijjarto.
Minister Đedovic highlighted that significant preparatory steps have already been accomplished. The technical documentation has been completed, necessary permits secured, and the public procurement process for the Serbian segment is currently underway. Additionally, there is an ongoing evaluation for a parallel product pipeline aimed at transporting refined petroleum products bidirectionally, which would bolster supply resilience while maintaining operations at the Pancevo refinery. However, the tender process has encountered delays; Transnafta has temporarily halted procurement activities due to a formal complaint, leading to an extension of the bidding deadline from February 5 to February 26.
In their discussions, both ministers addressed broader energy cooperation initiatives, including negotiations for a comprehensive intergovernmental agreement. Technical teams from Serbia and Hungary are actively working to finalize the agreement’s language, particularly concerning a potential transaction involving Serbia’s oil company NIS. Minister Đedovic stressed the importance of safeguarding national interests given NIS’s critical role in securing crude oil and fuel supplies essential for economic growth. Among the topics under consideration is Serbia’s potential acquisition of a 5% stake in NIS, alongside discussions related to the Pančevo combined heat and power plant and Petrohemija.
Furthermore, Belgrade is pushing for enhanced regional integration in electricity transmission. Ongoing projects aim to connect high-voltage networks with neighboring countries such as Hungary, Romania, and Bosnia and Herzegovina, which could facilitate more robust energy exchanges across the region.
Minister Szijjarto noted that Hungary’s MOL Group has ramped up exports to Serbia to mitigate potential supply disruptions during winter months. He also indicated that NIS stands ready to supply additional eurodiesel to Hungary if required. Additionally, ongoing negotiations between Russian stakeholders and MOL regarding the sale of NIS involve consultations with U.S. authorities to secure necessary approvals from both Serbia and Hungary.
