Construction of Serbian Section of Serbia-Hungary Oil Pipeline to Cost EUR 157 Million

The estimated value of the project of the construction of the oil pipeline Serbia-Hungary for a capacity of 5.5 million tons a year is EUR 157 million for the Serbian section of the oil pipeline, according to the website of the Ministry of Mining and Energy. The minister of mining and energy, Dubravka Djedovic, signed, within the first session of the Strategic Council for Cooperation of Serbia and Hungary, the Memorandum of Understanding on the construction of the Hungary-Serbia oil pipeline with the minister of foreign affairs and trade of Hungary, Peter Szijjarto.

The plan is for the new oil pipeline to go down the Szazhalombatta-Algyo-Roszke-Novi Sad route, with a total length of 304 kilometers and a potential extension to Thessaloniki and Durres.

– Serbia currently has only one direction from which it gets crude oil supplies, through Hungary, and for a greater security, we need, just like in the gas sector, to have a diversification of the sources and routes of supply. The construction of the new oil pipeline to Hungary will ensure a more secure supply of the local refinery and with that the local market as well. This project is planned in the list of priority investments as one of the strategic oil supply projects – Djedovic said on that occasion.

She emphasized that Hungary and Serbia, as two friendly countries, had additionally confirmed their solid and reliable partnership in energy during the energy crisis.

– Hungary is supplied with gas via Balkan Stream through Serbia, and Serbia stores a part of its gas reserves in Hungary. With the construction of the new oil pipeline, we will additionally expand our strategic relations in the field of energy, and Serbia will raise its energy security to a higher level – Djedovic said.

Before the beginning of the realization of the project, the memorandum envisages for the Agreement on the construction of the oil pipeline Hungary-Serbia to be signed between the companies Transnafta ad and MOL Group as the carriers of the realization of the project, which will define, in more detail, the technical-technological characteristics and the time framework of the realization and both the mutual and individual obligations of the participants in the project.

Also, the director of the PE Srbijagas, Dusan Bajatovic, and the director general of MVM CEEnergy Zrt, Laszlo Zoltan Fritsch, signed the agreement on the founding of a joint company between Srbijagas and the Hungarian power company MVM.

Ministarstvo rudarstva i energetike Republike Srbije

Transnafta ad Pančevo

JP Srbijagas Novi Sad

Ministry of Mining and Energy

Transnafta MOL Group

PE Srbijagas

MVM CEEnergy

Dubravka Đedović

Dubravka Negre

Peter Szijjarto

Thessaloniki

Duress

Laszlo Zoltan Fritsch

Construction of Serbian Hungary oil pipeline

oil pipeline route Szazhalombatta Algyo Roszke Novi Sad

Balkan Stream