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Hungary and Serbia strengthen cooperation on regional gas market and build new oil pipeline

Hungary and Serbia forge closer energy ties as the neighbouring countries announced to set up a joint gas trade company, cooperate on gas storage and build a new oil pipeline to strengthen supply security.

After a meeting with Serbia’s Energy Minister Dubravka Đedović, Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó underlined that the strategic energy cooperation with Serbia is one of the guarantees of Hungary’s secure energy supply.

“Hungary receives a daily 9-15 million cubic metres of gas via the TurkStream pipeline from Serbia and the country is also a possible delivery route for the gas Hungary wants to buy from Azerbaijan,” he pointed out.

The Minister said that Hungary is therefore interested in the development of Serbia’s energy network and expects the European Union to finance infrastructure developments in the region that enable Central Europe to access alternative sources.

He informed that a framework agreement had been reached that Hungary will store 500 million cubic metres of gas for Serbia in its storage facilities this year as well. In addition, state-owned energy company MVM and Srbijagas will set up a joint company soon to carry out joint gas trade activities, strengthening the presence of the two countries on the regional energy market, he said.

Hungary and Serbia also announced the construction of a new crude oil pipeline that will connect Algyő, in southern Hungary, and Novi Sad, in northern Serbia to strengthen supply security. Negotiations between Hungarian oil and gas company MOL and Serbian oil transport company Transnafta are already underway about the investment, the agreement is expected to be signed at the Serbian-Hungarian governmental summit scheduled for June.

Additionally, the two countries informed that the new cross-border power line that will double the transport capacity is progressing according to schedule and is expected to be completed by 2028.

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