Djedovic Handanovic: Construction of oil pipeline with Hungary to begin in 2025

BUDAPEST - Serbian Minister of Mining and Energy Dubravka Djedovic Handanovic met with Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto in Budapest on Tuesday to discuss joint projects in the energy sector and cooperation in the natural gas, oil and power supply sectors, and announced that construction of a Serbia-Hungary oil pipeline should begin as early as next year.

"Regional cooperation is key to attaining energy security and the cooperation between Serbia and Hungary in several fields, in the energy sector in particular, proves that. Besides cooperation when it comes to gas supplies, we intend to connect better when it comes to oil supplies and power transmission as well," Djedovic Handanovic said after the meeting with Szijjarto.

The Serbia-Hungary oil pipeline has been identified as a priority energy sector project for both countries, the Serbian Ministry of Mining and Energy said in a statement.

The project was also discussed in Budapest by a working group set up by Serbia's Transnafta and Hungary's MOL.

"The goal is that works begin as early as next year so that the oil pipeline can be finished by 2027. The investment is estimated at around 150 mln euros, the length of the oil pipeline is 128 km, and its capacity will amount to around 5 mln t of oil a year," Djedovic Handanovic said.

She noted that the two sides were also building a Pannonian Corridor to double the power transmission capacities between Serbia and Hungary.

"The investment in the Pannonian Corridor is worth around 100 mln euros and the goal is to finish it within four years. Besides, the plan is for Hungary to join the first regional electricity exchange - which Serbia has established with Slovenia - and that should materialise within the next few weeks," the minister said.

While in Budapest, Djedovic Handanovic also attended the Budapest Balkans Forum, at which she spoke about plans for development of the energy sector in the period to come.

"Serbia's strategic objective is energy independence at the lowest prices for citizens and businesses, and that is why we are focusing on three things: security of supplies through construction of new infrastructure, such as the finished gas interconnection with Bulgaria and interconnectors with North Macedonia and Romania in the future, boosting energy independence by building new production capacities, for which we need the Bistrica and Djerdap 3 (hydropower plants) and new 1 GW solar power capacities, as well as strengthening of regional connectivity - energy networking with neighbouring countries. Our cooperation with Hungary is an example of that," she said.