EUR 175 million from World Bank program for gas sector development

Belgrade hosted the Second Summit of Energy Ministers from Serbia, Bulgaria, Greece and North Macedonia, where regional interconnection and security of gas supply were among the key topics. Work on the gas interconnection between Serbia and North Macedonia is expected to begin soon as part of this broader project, while simultaneous investments are being made in the domestic network and storage capacities, Sasa Kokovic, Assistant Minister of Mining and Energy for Oil and Gas, told Radio Belgrade.

Speaking on the “Jutro je” program on Radio Belgrade, Assistant Minister Sasa Kokovic stated that the Second Ministerial Summit had demonstrated that Serbia, alongside Greece, North Macedonia and Bulgaria, recognized the importance of interconnection for long-term energy security and a continuous supply of natural gas.

– The Republic of Serbia has traditionally relied on a north-south supply route. This is the first time we are discussing a south-north supply. What does this mean? It means that through Alexandroupoli, specifically the LNG terminal serving as a major hub in Greece, we will gain the ability to easily receive LNG via Greece and North Macedonia. In the current geopolitical climate, having the option to secure contracts and access ready capacity is, of course, crucial – Kokovic emphasized.

He noted that the Serbia-Bulgaria interconnector had been commissioned in late 2024, enabling supplies from Azerbaijan and the diversification of supply routes. The Vertical Gas Corridor, extending from Greece, Bulgaria, and Romania toward Moldova and Ukraine, opens up new opportunities for connecting to the transport system via the Bulgarian network.

It was also agreed at the meeting that Romania would join the ministerial council in the future, ensuring additional connectivity with a country that possesses significant natural gas resources in both the Black Sea and onshore areas.

World Bank investments in domestic transport system and bottlenecks

In addition to international interconnectors, a key focus has been placed on strengthening the domestic gas network, as the transport system has an average operational age of approximately 56 to 57 years.

A World Bank program worth EUR 175 million has been approved for the development of the gas sector. This will facilitate the renewal of existing infrastructure and the construction of new routes. The first phase involves addressing the bottleneck on the section between Trupale and Pojate.

– The next two phases, that is, Phase 2 and Phase 3, will focus on extending the gas pipeline from Pojate, increasing the pipeline diameter between Pojate and Velika Plana, and developing new storage capacities, which is crucial. They will also cover the interconnection with Romania, involving a 150-kilometer section of the transport pipeline running from Mokrin, specifically Nakovo, via the Banatski Dvor and ITB underground storage facilities to Pancevo and Belgrade – the Assistant Minister explained.

Plans for expanding storage capacities

Kokovic emphasized that Serbia was prepared for the upcoming winter season but that it was further expanding its capacities to enhance security. The current capacity at Banatski Dvor stands at 450 million cubic meters, with plans to increase it to between 750 and 800 million cubic meters.

With the consideration of new storage projects such as ITB and Tilva, total storage capacity could reach up to 2 billion cubic meters, fully covering base consumption and import needs.

Kokovic expressed optimism regarding the future of the energy sector, highlighting that timely responses, such as filling oil product reserves and diversifying supply routes, successfully mitigated the impact of external geopolitical market shocks.

Ministarstvo rudarstva i energetike Republike Srbije

Svetska Banka-WB Beograd

Ministry of Mining and Energy

World Bank

Saša Koković