Serbia expects to sign agreement on gas power plant project with SOCAR in coming month

BAKU. Sept 3 (Interfax) - Serbia expects to sign a shareholders agreement with State Oil Company of the Azerbaijani Republic (SOCAR) to establish a joint venture for the construction of a 500 MW gas-fired power plant in the city of Nis within a month, the Serbian government said on its website.

"The Serbian Ministry of Mining and Energy said today that representatives of the ministry, the energy company Elektroprivreda Srbije (EPS), Srbijagas, and SOCAR had completed negotiations in Istanbul to finalize a shareholder agreement to establish a joint venture responsible for the development and construction of a gas-fired power plant in Serbia. The agreement between the three companies is expected to be signed in Belgrade within the next month," the statement reads.

The Serbian authorities believe the power plant will improve electricity supply and provide new production capacity, which is particularly important given the country's growing electricity consumption.

Azerbaijan and Serbia signed an intergovernmental agreement on February 15, 2026, to build a 500 MW GTPP in Serbia by 2023 on an equal footing.

EPS and SOCAR signed basic terms for cooperation in the development, construction and management of a gas turbine power plant in Nis, which Serbia expects to start building in 2027 in Baku in June this year.

The parties are actively developing cooperation in gas supplies. On November 15, 2023, SOCAR and Srbijagas signed an agreement to supply up to 400 million cubic meters of Azerbaijani gas per year to Serbia in 2024-2026, with the option to boost supplies from 2027.