Serbia and North Macedonia have moved their planned gas interconnector into the implementation phase, supporting prospects for a northbound supply route linking the Serbian market with Greek LNG infrastructure and the Southern Gas Corridor. The project is positioned to connect Serbia’s demand with gas flows associated with Greece’s LNG entry points.
The two governments signed an implementation agreement in Skopje on 27 August, advancing the initiative beyond memorandum and feasibility stages. The next steps move the project into execution planning on both sides of the border.
Route design and potential supply sources for Serbia
For Serbia, the pipeline would add another supply direction alongside existing inflows through Hungary and Bulgaria and planned infrastructure towards Romania. The route could also provide access to LNG arriving at Alexandroupolis and Revythoussa. It would additionally align with Azerbaijani gas transported through TAP and the Greek system.
The interconnector is described as fitting Serbia’s wider strategy to replace dependence on a limited number of import routes with a network of competing supply corridors. Earlier regional planning has pointed to completion around end-2027. The construction timetable will depend on permitting, financing and procurement across the border.
Commercial effects, tariffs and capacity constraints
The commercial impact is expected to depend heavily on transportation tariffs and available capacity. Additional infrastructure does not automatically lower gas prices, but it can expand options for traders and large consumers when comparing gas delivered through Bulgaria, Hungary, Greece or, in future, Romania.
Across southeast Europe, that added optionality is becoming increasingly relevant as the region shifts from a diversification phase toward a market where several physical routes compete for demand. Greece is identified as central to this change due to its role in regional entry flows.
Greece’s role and implications for North Macedonia
LNG capacity at Alexandroupolis and Revythoussa, together with TAP-linked gas and interconnection with Bulgaria, gives Greece an increasingly important role as an entry point for gas moving north. Romanian buyers have already started using the Greek-Bulgarian corridor commercially. Serbia could become another material destination if the North Macedonian link is completed.
For North Macedonia, the project could improve economics of its relatively small gas system by positioning the country as part of a transit corridor rather than only an end market. The pipeline may also support additional industrial demand or flexible gas-fired power generation in North Macedonia.
Execution priorities for Belgrade negotiations
The key question is now execution, following the move into implementation. If delivered broadly on schedule, the Serbia–North Macedonia interconnector would give Belgrade greater leverage when negotiating future supply and transportation contracts.
The value is described as lying less in any single source of gas and more in enabling multiple sources to compete for delivery into Serbia’s system. This is linked to further development of a more interconnected southeast European gas market where route optionality increasingly determines delivered price.
