Azerbaijan’s SOCAR and Serbia’s EPS set to sign Niš gas plant deal soon

Azerbaijan’s State Oil Company SOCAR and Serbia’s state-owned electricity utility EPS are expected to sign a shareholders’ agreement in the coming weeks to form a joint venture for the construction of a gas-fired power plant in the city of Niš, Serbian Minister of Mining and Energy Dubravka Đedović Handanović said during a meeting with Niš Mayor Dragoslav Pavlović.

The discussions focused on the current progress of the Niš gas power plant project. Đedović Handanović underlined that the facility is a strategic initiative developed within the framework of Serbia–Azerbaijan energy cooperation, according to local media.

The minister recalled that the agreement on project implementation was signed in February this year in Belgrade, in the presence of the presidents of Serbia and Azerbaijan.

"Preparation and coordination of planning documentation have already begun. The territorial plan for the city of Niš has been adopted and will serve as the basis for further work on the project," Handanović said.

She added that the meeting also reviewed the implementation timeline and key milestones through the end of 2030, when construction of the power plant is expected to be completed.

According to the minister, the new facility will improve the reliability of electricity supply and strengthen Serbia’s energy security. It is also expected to bring additional benefits by enhancing district heating services for residents of Niš.

Đedović Handanović emphasised the importance of coordinating all stakeholders ahead of the establishment of a joint venture between EPS and SOCAR.

"At the same time, work is underway to finalize the shareholders' agreement for the future joint company between EPS and SOCAR, which is expected to be signed in the coming weeks," she said.

Mayor Pavlović stated that the city administration and local institutions are taking all necessary steps to accelerate preparations and complete procedures required for construction to begin as soon as possible.

Earlier in June, EPS and SOCAR signed key terms of cooperation in Baku covering the development, construction, and operation of the Niš gas-fired power plant, setting out the main principles for the joint venture and the project’s core commercial framework.

By Jeyhun Aghazada