Serbia has begun preparations for construction of a €153 million gas interconnector with North Macedonia, designed to provide access to gas supplies from Greece, including international LNG markets. The Serbian section will extend approximately 145 kilometres and have annual transmission capacity of 1.5 billion cubic metres (bcm).
The first pipes have arrived in southern Serbia, enabling preparations for an initial five-kilometre section near Vranjska Banja, according to Energy Minister. Deliveries covering another 15 kilometres are expected by the end of October.
Regional infrastructure and construction schedule
The Serbian route will connect Orljane, south of Niš, with Leskovac and Vranje before reaching the North Macedonian border. It includes around 97 kilometres of upgraded infrastructure between Orljane and Vranje and 47 kilometres between Vranje and North Macedonia.
North Macedonia plans a 22.4-kilometre pipeline from the Klečovce area to the Serbian border, with an estimated cost of €29.6 million. Financing is supported by the European Bank for Reconstruction and Development (EBRD) and the Western Balkans Investment Framework. The Serbian and North Macedonian projects together represent approximately €183 million, excluding wider network investments needed to complete the regional route.
Serbia initially targeted completion in the first quarter of 2028, but land expropriation remains a potential obstacle. North Macedonia’s section is scheduled for completion in the fourth quarter of 2028, while the Greece–North Macedonia interconnector is expected to become operational in 2027.
Supply diversification and commercial risks
The new route would complement Serbia’s 1.8 bcm-capacity Serbia–Bulgaria interconnector, commissioned in late 2023. Access to Greek LNG infrastructure and the Southern Gas Corridor, including the Trans Adriatic Pipeline and wider Trans-Anatolian Natural Gas Pipeline network, could expand supply options, subject to available capacity and contracts.
Additional pipeline capacity does not guarantee cheaper gas or diversified suppliers. LNG prices, shipping and terminal charges, transmission tariffs and competition among European buyers will affect delivered costs.
At full capacity, the Serbian investment represents approximately €102 in capital expenditure per annual cubic metre of designed capacity. At 50% utilisation, annual throughput would be around 750 million cubic metres, falling to 375 million cubic metres at 25% utilisation. These are capacity scenarios, not estimates of tariffs or profitability.
Industrial demand and storage
Potential customers include manufacturers, food processors, district heating systems and gas-fired power plants. Demand will depend on gas prices relative to electricity and other energy sources, industrial efficiency requirements and the pace of electrification.
A proposed combined-cycle power plant near Niš, associated with cooperation between Elektroprivreda Srbije (EPS) and Azerbaijan’s SOCAR, could provide additional demand. Its final capacity, investment structure, construction timetable and gas supply arrangements remain decisive to its potential transmission requirements.
Serbia’s gas security also relies on underground storage. In October, the government reported approximately 707 million cubic metres of gas reserves across available storage arrangements. The new interconnector would need to operate alongside existing connections, storage and proposed links with Romania.
Vertical Gas Corridor and financing
At meetings in Belgrade, energy ministers from Serbia, North Macedonia, Greece and Bulgaria reaffirmed support for the Vertical Gas Corridor, which aims to improve gas flows towards Central Europe and the Western Balkans.
The interconnector’s performance will depend on coordinated construction, cross-border operating agreements, available transmission capacity and commercial supply contracts. Financing assessments must also distinguish revenue generated through transmission tariffs from the wider energy-security benefits of having an additional import route.
