New Bulgaria-Serbia gas pipeline put into operation

A new gas interconnection from Bulgaria to neighbouring Serbia was formally opened and put into operation on November 10. The pipeline is a crucial step for Serbia to diversify its gas sources and end its reliance on Russian supplies.

It links the Bulgarian town of Novi Iskar and the Serbian city of Nis, giving Serbia access to gas from Azerbaijan as well as the liquefied natural gas (LNG) terminal in the Greek port of Alexandroupolis via Bulgaria.

“The Bulgaria-Serbia interconnection is changing the energy map of Europe and guarantees the diversity and security of energy supplies not only for our two countries, but for the entire region of Southeast Europe,” said Bulgarian President Rumen Radev at the formal opening of the pipeline in Nis. 

The recently completed Serbian segment of the pipeline has a capacity of 1.8 cubic metres per year, covering 60% of the country's annual gas needs. 

The European Commission contributed €49.6mn for the interconnector's construction, with a further €25mn loan from the European Investment Bank (EIB), while the Serbian government covered the remaining €22.5mn. 

The opening ceremony in Nis was attended by Radev, and the presidents of Azerbaijan and Serbia, Ilham Aliyev and Aleksandar Vucic, as well as the head of the EU delegation in Serbia Emanuel Ziofre. The four officials pressed the button together to launch the gas pipeline into operation.

Vučić commented that the commissioning of the gas interconnector represents a new era for Serbia's energy security. 

Serbia's Minister of Energy Dubravka Djedovic Handanovic also highlighted the significance of the interconnector, pointing to its role in securing alternative gas supplies beyond those from Russia, a Serbian government statement said.

The pipeline will also contribute to the gasification of the southern part of Serbia and cities that are important for the economic development of the country, such as Nis, Pirot, Dimitrovgrad and Bele Palanka.

“We managed in just one year to complete the works and to agree, first of all, with our friends from Azerbaijan on gas deliveries, but also to coordinate with our friends from Bulgaria to connect and connect at the border between Serbia and Bulgaria and to be able to do this project simultaneously to finish on both sides of the border,” said Djedovic Handanovic.

On November 15, Serbia signed a deal with Azerbaijan, securing an agreement to purchase 400mn cubic metres of natural gas annually, starting from 2024. The deal was signed during Djedovic Handanovic’s visit to Baku. 

Bulgaria has already started receiving gas from Azerbaijan under a contract signed 10 years ago, as announced by Radev. The commissioning of the gas connection will also provide access to Serbia and number of other countries in the region to the liquefied LNG terminal in Alexandroupolis, where construction is due to be completed in March, and to the Chiren underground gas storage storage, which will be expanded by the end of 2024. 

For its part, Bulgaria will have access to gas from Western Europe in a reversible regime, a statement from the Bulgarian presidency said.