Azerbaijan, Serbia near agreement on strategic gas plant construction

Serbia is poised to sign a memorandum of cooperation with Azerbaijan for the construction of a gas-fired power plant near the city of Niš, a project seen as strategically vital for the country’s energy future.

Serbian Minister of Mines and Energy Dubravka Đedović Handanović made the statement at a meeting in Belgrade hosting Azerbaijani Deputy Economy Minister Anar Akhundov and a delegation from the State Oil Company of Azerbaijan (SOCAR), Caliber.Az reports referencing local media.

“The construction of this power plant near Niš is of strategic importance for Serbia,” Đedović Handanović said, expressing optimism that the agreement with Azerbaijan will soon be finalized.

The minister emphasized the project’s dual significance: boosting Serbia’s electricity supply and improving energy reliability. She noted that the initiative builds on the strategic gas supply partnership established between the two nations in 2023 and will further solidify ties.

The gas power plant is one of Serbia’s top priorities under its new Energy Development Strategy and Integrated National Energy and Climate Plan. Discussions about the plant have been a focal point in meetings between Serbian President Aleksandar Vucic and Azerbaijani officials.

Djedovic Handanovic highlighted the need for continued dialogue to define the next steps for the joint project. This includes collaboration between Serbia’s Integrated Coal-Gasification (ICG), state energy companies ENP and Srbijagas, and SOCAR.

Also attending the meeting were ENP Director General Dušan Živković and Srbijagas Director General Dušan Bajatović, reinforcing the commitment of both sides to advancing the project.

Serbian President Aleksandar Vucic has previously underscored the importance of ongoing negotiations between Baku and Belgrade in the energy sector. He hailed the gas power plant initiative as a cornerstone for strengthening cooperation and addressing Serbia’s long-term energy needs.

With both countries eager to finalize the memorandum, this partnership marks a significant step toward enhanced energy collaboration and mutual growth.

By Tamilla Hasanova