Feb 7, 2025
Serbia plans to begin construction on the oil pipeline connection with Hungary by the end of 2025.

Serbia is set to begin construction on the planned oil pipeline connecting it to Hungary by the end of this year, as stated by energy minister Dubravka Djedovic Handanovic on Friday.
Djedovic Handanovic emphasized in a press release that "diversification of supply is crucial for our energy security in both the gas and oil sectors, and the Serbia-Hungary pipeline will enhance the long-term stability of supply."
The preliminary design and feasibility study for the project have already been completed, and the spatial plan is expected to be approved soon, according to the announcement.
It is anticipated that the construction permit, along with the completion of the project and the technical documentation for the pipeline, will be finalized by the end of the year. The construction work is expected to be finished by 2027.
In June 2023, Serbia and Hungary signed an agreement for the construction of a 128 km oil pipeline connecting Novi Sad in northern Serbia to Algyo in southern Hungary. Serbia plans to invest 150 million euros (approximately $155.5 million) into the project, which will ultimately extend over 300 km to link Novi Sad with the Druzhba pipeline's receiving station in Szazhalombatta, Hungary. Djedovic Handanovic previously mentioned that the pipeline is projected to have an annual capacity of around 5 million tonnes of oil.
Currently, Serbia only receives crude oil through the Janaf pipeline from Croatia. Following the US Department of Treasury's announcement of sanctions against Serbia's only refiner, NIS, in January, Croatia's oil pipeline operator Janaf stated it had sought US approval to continue its contract with NIS for the transport of 10 million tonnes of crude from January 1, 2024, to December 31, 2026.
Last month, Hungarian foreign affairs and trade minister Peter Szijjarto noted that Serbia and Hungary have agreed to expedite investments in joint energy projects, including the oil pipeline, highlighting that sanctions against NIS underscore the significance of energy cooperation with neighboring countries.
In November of last year, Serbia's state-owned Transnafta, responsible for oil transportation via pipelines, sought assistance from Russia's state-controlled oil pipeline operator Transneft for a project that would allow Serbia to receive Russian Urals crude through Druzhba.
Djedovic Handanovic emphasized in a press release that "diversification of supply is crucial for our energy security in both the gas and oil sectors, and the Serbia-Hungary pipeline will enhance the long-term stability of supply."
The preliminary design and feasibility study for the project have already been completed, and the spatial plan is expected to be approved soon, according to the announcement.
It is anticipated that the construction permit, along with the completion of the project and the technical documentation for the pipeline, will be finalized by the end of the year. The construction work is expected to be finished by 2027.
In June 2023, Serbia and Hungary signed an agreement for the construction of a 128 km oil pipeline connecting Novi Sad in northern Serbia to Algyo in southern Hungary. Serbia plans to invest 150 million euros (approximately $155.5 million) into the project, which will ultimately extend over 300 km to link Novi Sad with the Druzhba pipeline's receiving station in Szazhalombatta, Hungary. Djedovic Handanovic previously mentioned that the pipeline is projected to have an annual capacity of around 5 million tonnes of oil.
Currently, Serbia only receives crude oil through the Janaf pipeline from Croatia. Following the US Department of Treasury's announcement of sanctions against Serbia's only refiner, NIS, in January, Croatia's oil pipeline operator Janaf stated it had sought US approval to continue its contract with NIS for the transport of 10 million tonnes of crude from January 1, 2024, to December 31, 2026.
Last month, Hungarian foreign affairs and trade minister Peter Szijjarto noted that Serbia and Hungary have agreed to expedite investments in joint energy projects, including the oil pipeline, highlighting that sanctions against NIS underscore the significance of energy cooperation with neighboring countries.
In November of last year, Serbia's state-owned Transnafta, responsible for oil transportation via pipelines, sought assistance from Russia's state-controlled oil pipeline operator Transneft for a project that would allow Serbia to receive Russian Urals crude through Druzhba.