Serbia is advancing a major gas infrastructure programme after the government said the World Bank approved about €175 million in financing, supporting investments aimed at easing transmission constraints and diversifying gas supply routes.
The first stage focuses on the 62-kilometre Trupale–Pojate high-pressure gas pipeline, which will extend the transmission network northward from the Niš area and provide additional capacity for gas entering Serbia through the Bulgaria-Serbia interconnector. The infrastructure is also being developed with a potential future connection to North Macedonia in mind. Such a link could provide access to LNG terminals in Greece and the Southern Gas Corridor.
Programme covers transmission and market reforms
The World Bank programme is divided into three phases and includes new transmission infrastructure, compressor capacity, underground gas storage and institutional reforms designed to bring Serbia’s gas market closer to EU rules. The Trupale–Pojate section is intended to address an internal transmission constraint that could otherwise limit the benefits of Serbia’s newly established external supply routes.
The pipeline will incorporate metering and regulation equipment, safety systems and SCADA technology, increasing transmission capacity toward inland areas from southern Serbia. The additional capacity would support greater use of the Bulgaria-Serbia interconnector, through which Serbia can access Azerbaijani gas and potentially LNG supplied via Greek terminals. A future North Macedonia connection would add another southern supply route.
Gas infrastructure linked to electricity plans
The expansion also forms part of Serbia’s broader energy infrastructure development. The country plans to add significant solar and wind capacity during the remainder of the decade, increasing the need for flexible generation, storage and stronger regional electricity connections as renewable output varies.
Gas-fired generation is being considered as one source of that flexibility. Serbia has discussed new gas-fired capacity with international partners including SOCAR, while the planned Niš combined-cycle project has been presented as part of the longer-term transition away from coal. A stronger gas transmission network would support the supply requirements of such projects. At the same time, the development of new gas infrastructure raises longer-term utilisation considerations because pipelines and gas-fired power plants can operate for decades, while European energy policy is moving toward lower fossil-fuel consumption.
World Bank support includes institutional measures
The World Bank financing covers more than physical infrastructure. The programme also provides support to the Ministry of Mining and Energy, Gas Infrastruktura, Transportgas Srbija, Srbijagas and the Energy Agency. The measures address governance, regulation, operational efficiency and financial sustainability. The programme’s institutional component is intended to accompany the expansion of physical gas infrastructure with changes to the operation and regulation of the gas market.
Serbia’s gas system remains dominated by state-controlled infrastructure and long-term supply arrangements. Changes concerning network access, tariffs and system operations could affect the ability of alternative suppliers and traders to participate in the market.
Storage planned in later phases
Subsequent stages of the programme envisage further transmission infrastructure and underground gas storage. Storage capacity has gained importance following Europe’s 2022 energy crisis, which highlighted the role of inventories in managing supply disruptions and periods of significant price volatility. Serbia currently relies heavily on Banatski Dvor and storage arrangements outside the country. Additional domestic storage capacity would increase seasonal flexibility and reduce dependence on individual import routes.
Expanded infrastructure could also strengthen Serbia’s position within the regional gas market, with connections toward Bulgaria and Hungary and potential future links with North Macedonia and Romania. The development of transmission, storage and market rules would need to progress together for Serbia to expand its role in regional gas flows.
Environmental groups challenge gas investment
The World Bank-backed programme has faced opposition from a coalition including CEE Bankwatch, WWF Adria, the Belgrade Open School and RERI. The groups called on the World Bank board to defer the project, arguing that additional gas infrastructure could prolong Serbia’s dependence on fossil fuels while the European Union advances electrification and renewable energy. The groups referred to a proposed IBRD commitment of about $195.5 million.
Serbia’s Ministry of Mining and Energy rejected that interpretation, describing the programme as infrastructure modernisation rather than an incentive for increased fossil-fuel consumption. The ministry said the project was prepared under World Bank procedures that included economic, environmental and social assessments as well as consideration of alternatives. It also argued that stronger infrastructure is needed to diversify gas supplies and provide flexibility during the energy transition.
Domestic network becomes central to diversification
Serbia remains heavily exposed to Russian gas despite the Bulgaria interconnector and the start of purchases from Azerbaijan. The development of additional supply sources therefore depends partly on whether the domestic transmission and storage network can accommodate greater volumes from different entry points. The Trupale–Pojate pipeline is designed to increase the usefulness of those existing and prospective international connections by improving the movement of gas through Serbia’s internal network.
The investment is being developed alongside a broader energy infrastructure cycle involving electricity transmission, renewable generation, pumped storage, batteries and potentially new gas-fired generation. The World Bank-backed gas programme adds another major component to that infrastructure development, with its initial physical investment focused on the Trupale–Pojate section and later phases covering transmission, storage and institutional reforms.
