Serbia has secured continued Russian natural gas supplies, extending an arrangement with Gazprom while the country develops alternative import routes and expands energy cooperation with Azerbaijan.
Gazprom has extended its arrangement with Srbijagas for another three months under unchanged commercial conditions, according to Srbijagas CEO. The agreement covers approximately 6.1 million cubic metres of gas per day, maintaining Russian supplies as the main component of Serbia’s gas portfolio during the winter period.
Short-term supply secured
The extension removes an immediate procurement issue for households, district heating systems and industrial consumers, but does not establish a new long-term supply framework. Serbia’s previous long-term Russian gas contract has expired, with supply subsequently maintained through shorter extensions rather than a new multiyear agreement.
At the same time, Serbia has expanded the infrastructure available for alternative gas supplies. The Serbia-Bulgaria gas interconnector provides access to Azerbaijani gas and supplies arriving through southern European routes, while Serbia is pursuing additional connections with Romania and North Macedonia.
Alternative infrastructure expands
The development creates a distinction between physical access to alternative suppliers and the composition of Serbia’s actual gas supply. Serbia now has infrastructure allowing access to several sources, while Russian gas continues to account for a central share of supply volumes and pricing. The issue is becoming more significant as the country prepares for higher structural gas consumption.
EPS, Srbijagas and SOCAR have signed a shareholders’ agreement for a planned 500 MW combined-cycle gas-fired power plant near Niš. Serbia’s partners will collectively hold 50% of the project, with Azerbaijan’s SOCAR owning the remaining 50%.
Niš power plant will add gas demand
The plant is targeted for completion around 2030 and would provide flexible electricity generation alongside Serbia’s growing wind and solar capacity. The planned facility would also create a substantial additional source of natural gas demand. For Serbia, greater gas-fired generation would provide additional flexibility and could reduce reliance on lignite-based generation, while simultaneously increasing the importance of secure, competitive and diversified gas supplies.
Gas costs are also directly relevant to energy-intensive Serbian manufacturers because procurement prices affect their operating expenses and competitiveness. The latest extension therefore secures supply for the immediate winter period while leaving the longer-term structure of Serbia’s gas procurement unresolved. Serbia will again face decisions over the balance between Russian supplies and the alternative routes and suppliers being developed through its expanding gas network.
