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Serbia initiates construction of a new crude oil pipeline to enhance energy supply resilience

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Serbia has commenced a public tender for the development of a new crude oil pipeline that will connect the Hungarian border to Novi Sad. This initiative, announced by Transnafta, aims to bolster supply security by establishing an alternative import route for crude oil.

The proposed pipeline will span 113 kilometers, traversing areas such as Kanjiza, Senta, Ada, Becej, and Zabalj before reaching Novi Sad. It is designed to have an annual capacity of 5.5 million tons, primarily intended for transporting Russian Export Blend (REB) crude. However, since late 2022, Serbia has faced restrictions on importing Russian oil due to EU sanctions. The Ministry of Energy has emphasized that the project’s significance lies in its potential to diversify energy sources rather than create reliance on a single supplier.

Currently, Serbia predominantly utilizes the JANAF pipeline for crude imports, contingent on US sanctions not impeding operations. The authorities have indicated that feasibility studies and spatial planning are finalized, with location permits underway. Construction is anticipated to commence by mid-year.

The Ministry also pointed out broader regional energy strategies, noting that Hungary and Slovakia receive supplies through the southern branch of the Druzhba pipeline. Future connections between Druzhba and the planned Sarmatia pipeline near Brody in Ukraine could facilitate the flow of Caspian oil into Central and Southeastern Europe, potentially expanding Serbia’s options for crude supply. While JANAF is expected to remain the primary conduit in the near term, additional routes are seen as enhancing Serbia’s negotiating leverage and mitigating supply risks.

Furthermore, Serbia is considering the establishment of product pipelines with Hungary and Romania to transport petroleum products without dependence on river, rail, or road logistics. A preliminary strategic assessment has been completed in collaboration with Transnafta, with discussions held between Serbian President Aleksandar Vučić and Hungarian Prime Minister Viktor Orban regarding this concept.

Oil industry analysts suggest that the forthcoming pipeline could also accommodate non-Russian crude if integrated into Druzhba at appropriate junctions. This is illustrated by Kazakh oil deliveries to Germany’s Schwedt refinery via the northern Druzhba branch, which totaled approximately 1.4 million tons in 2024 and around 2 million tons in 2025. Economically, transit through JANAF can incur costs up to €48 million annually, while operating a domestic pipeline is estimated at about €10 million per year. If initiated promptly, the project could be finalized within 20 months, making it both a financially viable and strategically significant endeavor.

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