Serbia and the World Bank have entered discussions on the initial preparation phase of a planned €1 billion gas infrastructure programme, starting with the first section of the Niš–Velika Plana gas pipeline. The broader programme includes additional gas transport capacity, the construction of compressor stations and the expansion of underground gas storage facilities in later development stages.
Pipeline expansion targets stronger gas network capacity
The planned infrastructure is designed to improve Serbia’s ability to use existing interconnectors, expand gas availability for industrial consumers in southern and eastern regions, and strengthen the country’s position as a regional transit market. The programme also includes potential support for future gas-fired electricity generation, which could provide balancing capacity for renewable energy production and compensate for periods of lower hydropower or coal availability.
Financing structure remains under preparation
A final financing package for the programme has not yet been disclosed. Key investment considerations include the balance between sovereign and corporate borrowing, the tariff framework available to support debt repayment, and whether expected utilisation levels justify development of the full infrastructure programme. The project remains in the preparation phase, with commercial viability depending on the final definition of route selection, pipeline capacity, tariff arrangements, procurement procedures and financing conditions.
Gas supply strategy faces changing market conditions
Serbia currently expects its short-term gas supply arrangement with Russia to continue beyond September, although European energy policy developments are making long-term reliance on that supply route less predictable. New pipeline infrastructure would provide additional flexibility only if alternative gas sources are secured through commercially competitive and contractually available supply arrangements. The ongoing discussions with the World Bank represent an important step in programme development, while the investment case will depend on the completion of technical, financial and commercial frameworks.
