Serbia is progressing towards the initiation of a key energy infrastructure project with the proposal from state pipeline operator Transnafta to award the construction contract for the Hungary–Novi Sad oil pipeline to a consortium led by MVM Južna Bačka. This development marks a significant step in enhancing Serbia’s energy landscape.
The project, estimated at around RSD 14.5 billion excluding VAT, or approximately RSD 17.4 billion including VAT, involves the construction of a new oil pipeline that will connect the Hungarian border near Horgoš to the Novi Sad terminal. The consortium selected for this project also includes Konvar, Delta inženjering, Zavod za zavarivanje, Čelik, and Delta preving.
This infrastructure will link Serbia directly to Hungary’s oil transport system, which is associated with the Druzhba pipeline. The establishment of this connection is particularly crucial as it offers an alternative crude supply route amidst growing concerns over regional energy security and the need for supply diversification due to sanctions.
The pipeline initiative comes at a time of uncertainty regarding the ownership and strategic direction of Naftna Industrija Srbije, as negotiations involving MOL Group, the Serbian government, and international regulators are ongoing, influenced by compliance requirements related to Russian ownership exposure.
From an investment and energy security standpoint, the Hungary–Serbia oil interconnection signifies more than just a conventional expansion of pipeline capacity. Currently, Serbia depends largely on crude supplies that utilize Croatian transit infrastructure and routes through the Adriatic Sea. The new northern corridor aims to mitigate geopolitical concentration risks while enhancing options for crude sourcing, logistics management, and refinery supply flexibility.
This project is part of a broader trend observed in Central and South-East Europe where governments are prioritizing investments in cross-border energy infrastructure across oil, gas, and electricity sectors. The urgency for energy security has escalated due to fluctuations in European gas and oil markets, disruptions caused by sanctions, and increasing demands on nations to secure independent import routes.
For Serbia specifically, the pipeline is poised to reinforce Novi Sad’s position as a regional energy logistics hub while supporting aspirations to establish the country as a significant energy transit and trading center in South-East Europe. This initiative aligns with recent declarations from Serbian energy officials that highlight the importance of regional interconnections, infrastructure resilience, and diversification of strategic supply routes.
Construction is set to commence along the entire Horgoš–Novi Sad corridor, which will include expansion activities at the Novi Sad terminal. As per earlier announcements, the Serbian segment of this oil pipeline is projected to extend slightly beyond 100 kilometers.
