Hungary and Serbia sign memorandum for oil pipeline construction

The authorities of Hungary and Serbia have signed a memorandum for the construction of an oil pipeline, which is set to connect with the existing Druzhba oil pipeline in Hungarian territory. In a meeting held in the Serbian town of Palic, the Strategic Council for Cooperation between Serbia and Hungary convened, with high-ranking officials from both countries in attendance.

The memorandum of understanding regarding the oil pipeline was formally signed by Hungarian Foreign Minister Peter Szijjarto and Serbian Energy Minister Dubravka Djedovic. This significant agreement paves the way for enhanced energy cooperation between the two nations. Additionally, the countries solidified their collaboration by signing a document establishing a joint venture for gas trading.

Addressing the public later in the day, Serbian President Aleksandar Vucic disclosed that his country has undertaken measures to ensure energy security for the upcoming winter. Plans include the storage of 560 million cubic meters of gas within Serbian territory as well as in Hungarian storage facilities. President Vucic expressed gratitude to their Hungarian counterparts, emphasizing that their collaborative efforts have effectively mitigated potential issues. Presently, 650 million cubic meters have been reserved in the Banatski Dvor underground storage facility, spanning both Serbia and Hungary, with 560 million cubic meters already in reserve. These considerable volumes significantly surpass Serbia’s needs, ensuring a secure energy supply for the nation throughout the winter months.

It is noteworthy that Russian energy giant Gazprom remains Serbia’s sole natural gas supplier and a major provider of pipeline gas to Hungary, an EU member state. However, Serbia has plans to diversify its gas sources by commencing the import of liquefied natural gas from Greece in the coming fall, subsequently transporting it northward to Hungary. Furthermore, Azerbaijan aims to commence gas pumping to the Balkans before the year’s end, adding another potential source of energy for the region.

The signed memorandum and the creation of a joint gas trading venture represent significant milestones in the energy partnership between Hungary and Serbia. These initiatives not only strengthen bilateral ties but also contribute to the broader energy security objectives of both nations.

You may also like...

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x