Serbia ensures winter energy security with Azerbaijan gas deal

Serbia is set to receive up to 2 million cubic metres of natural gas per day from Azerbaijan during the winter months, ensuring a stable energy supply amidst ongoing global energy challenges.

This move is part of Serbia's broader strategy to minimize reliance on market fluctuations and ensure energy security.

Serbian Minister of Mining and Energy, Dubravka Djedovic-Handanovic, reported that the country has undertaken significant measures to prepare for winter, Caliber.Az reports via local media.

“We have repaired TPPs and HPPs, filled coal dumps and gas storage facilities,” she said. “Currently, a total of about 440 million cubic metres of gas is in storage at the Banatski Dvor and Hungary CCGTs.”

Djedovic-Handanovic added that Serbia has also started the Banatski Dvor expansion project, which will significantly increase its gas storage capacity. "Additionally, we have secured gas supplies from Russia and Azerbaijan,” she said. "Co-operation with Azerbaijan and Russia ensures stable and secure gas supplies to Serbia."

The Azerbaijani gas will play a crucial role in supplying Serbia’s heating centres, industries, and planned gas-fired power plants. Djedovic-Handanovic emphasized that “gas-fired power plants are of great importance in periods of high consumption, as they are a stable source of basic energy."

On the importance of the new gas supply agreement, she remarked, "Serbia has safe gas supplies across the Balkans thanks to co-operation with Gazprom. Contracts with Azerbaijan give us additional security, as we will be able to receive up to two million cubic metres of gas per day from them this winter.”

The partnership between the State Oil Company of Azerbaijan (SOCAR) and Serbian company Srbijagas began with a contract signed on November 15, 2023, for the supply of up to 400 million cubic metres of gas per year from Azerbaijan to Serbia from 2024 to 2026. In addition, another contract signed on September 26, 2024, secures 1 million cubic metres per day of Azerbaijani gas for Serbia from November 2024 to April 2025.

This collaboration will significantly contribute to Serbia's energy stability and help mitigate the challenges posed by the ongoing energy crisis.

By Tamilla Hasanova