Serbia is seeking $195.5 million in World Bank financing for a major gas infrastructure programme aimed at strengthening supply diversification and internal transmission capacity. The first phase of the Strategic Gas Infrastructure and Institutional Strengthening Project includes a new high-pressure pipeline linking Trupale near Niš with Pojate, together with reforms to the country’s gas-sector institutions. The planned pipeline would extend for about 62 km and have annual transmission capacity of approximately 4 billion cubic metres.
Pipeline to strengthen domestic gas transmission
The project is designed to address an internal transmission bottleneck as Serbia expands access to alternative gas supplies. Serbia has already opened the Bulgaria-Serbia gas interconnector, providing access to additional gas from the Southern Gas Corridor and potentially LNG delivered through Greece. The new Trupale-Pojate connection would allow those supplies to move more efficiently toward major consumers in central and northern Serbia. It would also strengthen the network ahead of a planned interconnector with North Macedonia, which could provide another connection toward Greek LNG terminals and southern European gas infrastructure.
World Bank financing faces climate scrutiny
The proposed $195.5 million International Bank for Reconstruction and Development loan has drawn criticism from environmental organisations as it approaches the World Bank approval process. CEE Bankwatch Network, WWF Adria, the Belgrade Open School and RERI have called for approval to be deferred and for the programme’s climate compatibility and alternatives to be reassessed. The organisations argue that expanded gas infrastructure could encourage higher consumption while the European Union moves toward lower fossil-fuel use.
The Serbian Energy Ministry rejected that interpretation on September 24, describing the project as modernisation of the existing gas network rather than an initiative to increase greenhouse-gas emissions. The ministry said additional transmission capacity would improve energy security, reliability and supply diversification while supporting a power system with growing volumes of wind and solar generation.
Gas infrastructure and future power generation
Serbia remains heavily dependent on Russian gas, while new connections can provide access to Azerbaijani supplies and LNG arriving through Greece. The same infrastructure could also support higher domestic gas consumption if planned gas-fired power generation expands. Serbia has plans for a gas power plant near Niš and has considered additional flexible generation as coal capacity is gradually replaced and renewable electricity production increases. Gas-fired generation can provide flexibility when wind and solar output changes, but Serbia is also developing other options, including battery storage, transmission upgrades and pumped-storage hydropower projects such as Bistrica and the proposed Đerdap 3. Cross-border electricity trading represents another flexibility mechanism.
Broader gas network programme
The Trupale-Pojate pipeline forms the first phase of a wider proposed gas infrastructure programme. Later phases include around 80 km of pipeline between Pojate and Veliko Orašje, additional transmission infrastructure and the proposed Tilva underground gas-storage facility. Serbia is also pursuing new gas interconnections with neighbouring countries. Together, these projects would expand transmission routes, storage capacity and internal network connectivity. For industrial consumers, greater diversification could improve supply security and competition between gas sources. Natural gas remains relevant to industries including fertiliser, chemicals, metals and food processing, where it is used as fuel or feedstock.
Hydrogen considered for future network use
The Serbian government has also pointed to the potential for parts of the expanded network to transport hydrogen in the future. Hydrogen compatibility could provide an additional long-term use for gas infrastructure if gas demand declines. Hydrogen production, storage, consumption and cross-border markets would need to develop alongside the transmission network.
Institutional reforms accompany construction
The World Bank programme also includes institutional and regulatory measures involving Srbijagas, Transportgas Srbija and Gas Infrastructure, as well as the Energy Agency of the Republic of Serbia. The reforms are intended to strengthen the functioning of Serbia’s gas sector alongside physical infrastructure investment. Clearer institutional responsibilities, stronger regulation and more transparent transmission arrangements could influence how effectively alternative supply routes are used. The proposed $195.5 million financing therefore covers a wider energy-system development programme rather than a standalone pipeline project. The investment comes as Serbia balances diversification of gas supplies and network security with the longer-term transition toward lower-carbon energy and greater renewable generation.
