Government grants approval for agreement between EPS, Srbijagas and SOCAR to establish joint venture for gas-fired power plant project near Nis

The Government of Serbia has adopted a decision granting approval for the conclusion of a shareholders' agreement between the joint-stock company Elektroprivreda Srbije (EPS), the public enterprise Srbijagas Novi Sad, and the State Oil Company of the Azerbaijan Republic (SOCAR). The agreement concerns the establishment of a joint venture to develop, finance, construct, and operate an energy facility - a gas-fired power plant for the combined production of electricity and heat in Nis.

As specified, the approval applies to a decision authorizing the conclusion of the shareholders' agreement, which was adopted by the Supervisory Board of Srbijagas during its session on September 30, 2026.

Concurrently, the Government also adopted a decision granting approval for a resolution authorizing the conclusion of the shareholders' agreement, which was adopted by the Assembly of Elektroprivreda Srbije during its session on September 30, 2026.

Let us remind that, on September 30, Elektroprivreda Srbije, Srbijagas and SOCAR signed a shareholders' agreement regarding the development of a project to construct a combined-cycle gas-fired power plant in Nis, which includes the establishment of a joint business entity.

As indicated at the time, the preliminary feasibility study has been completed, the Spatial Plan for the City of Nis has been adopted and contracts have been signed for the preparation of planning documentation and a study on connection to the transmission system. Furthermore, a designer has been engaged and work has begun on the feasibility study and technical documentation.

In the joint venture established by EPS, Srbijagas and SOCAR, 50% of the ownership will be held by the Serbian companies, and 50% by the Azerbaijani partner. The agreement defines the rights and obligations of the companies, joint management, the requirement for unanimity when making key decisions during the project's preparatory phase and the financing of development activities.

The new gas-fired power plant is planned to have a capacity of up to 500 MW and will generate both electricity and heat. Its construction is expected to be completed within the next four years. According to the latest announcements, the plant will be built in the area between Lalinac and Krusac.

Elektroprivreda Srbije ad Beograd

JP Srbijagas Novi Sad

SOCAR

gas fired power plant near Niš

Lalinac

Krušac