Hungary again offered to cover on a new pipeline all Serbia’s needs from Petrol
Planned oil pipeline from Hungary to Serbia may begin to meet all Serbia’s needs for crude oil until 2028, Hungarian Foreign Minister Peter Siarto said on Wednesday. The two countries agreed in 2022 to build a pipeline to supply Serbia a Russian Urals variety coming through the Druzhba oil pipeline of the Soviet era, but so far the project has not begun.
Serbs have been trying to find a solution to terminate Russian property at NIS oil company since the United States imposed – and twice postponed – sanctions on the Russian oil sector in January.
Hungary and Serbia have agreed on an oil pipeline to connect with the Russian « Druzhba »
The southern branch of the Druzhba pipeline passes through Ukraine to Hungary, Slovakia and the Czech Republic and is the main source of supplies for the refineries of the three countries for years. The Czechs must stop deliveries on this route in the coming months and thus end the dependence on Russian oil.
- The construction of the pipeline with an annual capacity of 4-5 million tonnes can begin in the end of this year or early 2026, said Siarto at a press conference with Serbian Energy Minister Dubavka Dedovich Handanovic.
- The project involves an increase in the capacity of oil imports from Hungary between the Ukrainian border and its refinery on the Danube and the construction of a new, 190 km long pipeline from the refinery to the border with Serbia.
- The Syarto said the cost of expanding capacity and the construction of the new pipeline to the border will be about $ 130 billion (just over $ 350 million).
While the European Union is trying to reduce its dependence on Russian energy supplies, Hungary (without access to the sea) still receives about 80% of its gas and most of its crude oil from Russia.
Relations between Serbia and Hungary have intensified in recent years, and their longtime leaders, Hungarian Prime Minister Victor Orban and Serbian President Alexander Vucic enjoy strong relations with Russia.
| The Hungarian oil company MOL, which has refineries in Hungary and Slovakia, presented a study on the economic expediency of the pipeline on Wednesday, said Siarto, which was approved by both sides. |
« Currently, all the needs of Hungary for natural gas imports can be met through Serbia. And with this new investment, all Serbia needs for raw oil imports will be met through Hungary, » Syarto said. « This creates a strategic position that will ensure considerable security for both sides, » Siarto added, referring to energy security.
