Djedovic Handanovic: Serbia-Hungary oil pipeline to be completed by the end of 2027, works expected to begin in the fall

The Serbia-Hungary oil pipeline will be completed by the end of 2027, works are expected to be contracted during the summer and begin in the fall, said Minister of Mining and Energy Dubravka Djedovic Handanovic after a meeting with Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto. As she reminded, the public procurement process for the construction of the oil pipeline with Hungary in Serbia is underway, the technical documentation has been completed, and the necessary permits have been secured.

Also, as she noted, the construction of a product pipeline within the same project that can transport oil derivatives in both directions, which would further strengthen safety and security, without jeopardizing the continued operation of the Pancevo Refinery, is being considered.

Let us remind that, a few days ago, Transnafta halted further activities in the public procurement process for the construction of an oil pipeline between Hungary and Serbia, due to a request for protection of rights. This tender was recently extended until February 26, while the original deadline for submitting bids was February 5, and since the announcement, the tender has had as many as five corrections, which mainly related to changes in the tender documentation due to ambiguities.

Djedovic Handanovic and Szijjarto also discussed other topics in the field of energy, emphasizing that intensive talks were underway between Serbia and Hungary on the drafting of an intergovernmental agreement in the field of energy.

Djedovic Handanovic indicated that technical teams were working day and night to harmonize the intergovernmental agreement, especially the part concerning the transaction related to NIS.

– We want to protect the interests of our citizens because NIS is of great importance for the supply of oil and derivatives to our country, and we are trying to reach a satisfactory compromise solution, especially regarding the future operation of the Pancevo Refinery, which is of great importance to us due to energy security, GDP growth and a large number of employees – she explained.

Also, as she added, there are discussions about the purchase of five percent of ownership in NIS by Serbia, as well as TE-TO Pancevo, Petrohemija and other investments in NIS.

She reiterated that Serbia was committed to better connectivity with Hungary, with which it was working on a project to connect by long-distance electricity transmission lines, as well as with Romania and Bosnia and Herzegovina.

Szijjarto emphasized that MOL had more than doubled its exports to Serbia so that there would be no problems with supply during the winter, noting that NIS was ready to send additional quantities of Eurodiesel to Hungary to help supply and provide support. According to his assessment, negotiations between the Russian owners and MOL regarding the sale of NIS are progressing well. The minister noted that the Russian owner and MOL had reached an agreement, and added that there were constant consultations with the US government so that the ministries of Serbia and Hungary would ultimately approve the transaction.

Ministarstvo rudarstva i energetike Republike Srbije

NIS a.d. Novi Sad

MOL Serbia d.o.o. Beograd

MOL Hungarian Oil and Gas Budapest

MOL

Dubravka Đedović Handanović

Peter Szijjarto

Serbia Hungary oil pipeline

construction of Serbia Hungary oil pipeline

Serbia Hungary products pipeline

sale of NIS