Belgrade, Baku to discuss new gas supply contracts soon - Serbian Energy Ministry
BAKU. July 29 (Interfax) - Serbia plans to begin negotiations with Azerbaijan in the near future to conclude new gas supply contracts, Serbian Mining and Energy Minister Dubravka Dedovic-Handanovic said.
"We expect negotiations on new contracts to begin very soon, which will ensure not only reliable supplies but also sufficient resources to operate the planned gas-fired power plants. Thus, cooperation with Azerbaijan within the framework of the Southern Gas Corridor is of long-term and strategic importance for us," Dedovic-Handanovic said in an interview with Azerbaijan's Report agency.
Under the current agreement with Azerbaijan, Serbia is to receive up to 400 million cubic meters of gas per year through 2026.
"In the future, this volume may be increased to 1 billion cubic meters - that is, 2.5 times more. For the upcoming 2025-2026 heating season, the same daily supply volumes of Azerbaijani gas are planned as last year - 100,000 cubic meters at a fixed price and up to 1 million cubic meters at a flexible rate. During the 2025-2026 winter period, daily volumes are expected to rise to 2 million cubic meters. We expect the contracting process to be completed in the coming weeks," she said.
The Southern Gas Corridor plays a strategic role in diversifying Serbia's gas supply, she said.
"Although the country's main needs are currently met via the Balkan Stream, we see Azerbaijani gas as a key alternative source, especially considering our goal to reduce dependency on a single supplier," she said.
Construction of the Serbia-North Macedonia gas pipeline will allow Belgrade to increase imports of Azerbaijani gas, Dedovic-Handanovic said.
"This project is aimed at further diversifying Serbia's supply sources and routes. It will enable us to receive Azerbaijani gas [via North Macedonia] through the Southern Gas Corridor system, which includes the TANAP and TAP pipelines. In this way, we are laying a solid foundation for sustainable, reliable, and scalable imports of Azerbaijani gas," she said.
Currently, the only route for Azerbaijani gas supplies into the country is the pipeline from Bulgaria near Kalotina, she said.
Serbia and Azerbaijan will soon sign a memorandum on the construction of a gas-fired power plant near the city of Nis, she said.
Serbia's and Azerbaijan's energy companies - EPS, Srbijagas and the State Oil Company of the Azerbaijani Republic (SOCAR) - along with the Serbian Mining and Energy Ministry and the Azerbaijani Energy Ministry have already prepared a financial analysis for the gas power plant project, she said.
"It was presented at a meeting in Baku in June this year. At present, the involvement of interested parties is in the negotiation phase. Once the financial and economic parameters are agreed upon and the agreement is signed, we will be able to begin practical implementation and determine the exact start date for construction," she said.
This project remains among the country's priorities and is seen as a key element in ensuring energy stability, Dedovic-Handanovic said.
"This facility has already been included in our new energy strategy and integrated national energy and climate plan as a top priority. It will provide base-load generation and improve the reliability of the energy supply," she said.
SOCAR and Serbia's Srbijagas signed a supply agreement on November 15, 2023, for deliveries of Azerbaijani gas to Serbia. The document provides for the purchase of up to 400 million cubic meters of gas per year from 2024 to 2026, with a possibility of increasing this volume starting in 2027. In addition, on September 26, 2024, SOCAR and Srbijagas signed a contract for the sale and purchase of an additional 1 million cubic meters per day of Azerbaijani gas for the period from November 1, 2024, to April 1, 2025.
As reported, the governments of Serbia and North Macedonia signed a memorandum in October 2024 to jointly construct a gas pipeline approximately 70 km in length, with a capacity of around 1.2 bcm of natural gas per year.
