Belgrade sees not only commercial, but also strategic value of pipeline via Hungary
ROME. July 21 (Interfax) - A planned oil pipeline between Hungary and Serbia plays not only a commercial but also a strategic role in the long term, Serbian Energy Minister Dubravka Djedovic Handanovic said after talks with Russian Deputy Energy Minister Pavel Sorokin and Hungarian Foreign Minister Peter Szijjarto on Monday.
"An oil pipeline between Serbia and Hungary has not only commercial, but also broader strategic importance for long-term energy security of our countries," the Serbian RTS television channel quoted the minister as saying.
"Thanks to it, we will connect to one of the largest European oil pipelines and for the first time receive an alternative route for oil supplies, which is vital for ensuring supply security. In early July, Transneft and MOL signed an agreement on technical compliance with the specifications for building the pipeline, which is a crucial step forward in the development of the project. In the near future, it is expected to define the commercial part of building the oil pipeline, as well as the refining capacities required by Serbia's NIS," Djedovic Handanovic said.
Djedovic Handanovic said that the authorities of Serbia, Hungary and Russia supported the implementation of this project, which would provide Serbia with another route for oil supplies in the coming decades.
"Just as Serbia plays an important role in supplying gas to Hungary via the Balkan Stream gas pipeline, while using gas storage facilities in Hungary for its reserves, the construction of this pipeline will allow Serbia to ensure oil supplies via Hungary, thereby further strengthening energy security," Djedovic Handanovic said.
The Serbian side will stand ready to start work early next year, she said. Szijjarto also said he hopes that work on the Hungarian section will begin as early as next year.
The pipeline is expected to be put into operation by 2027, with around 180 kilometers of new infrastructure to be built across Hungary, and 120 kilometers across Serbia, the RTS channel reported. A control and measuring station will be installed on the two countries' border.
Russian Deputy Prime Minister Alexander Novak said at the St. Petersburg International Economic Forum in June that Russia stood ready to supply raw materials to an oil pipeline under construction between Hungary and Serbia.
Russia and Serbia have earlier signed a cooperation memorandum, which will lay the foundation for building and maintaining oil transportation infrastructure across Serbia. Transneft will help Serbia build a 300-kilometer-long oil pipeline.
