Serbia to lay first 5 km of North Macedonia gas pipeline

The first five kilometers of the gas pipeline to North Macedonia, out of roughly 145 kilometers in total according to N1, will start going into the ground next week near Vranjska Banja. Dubravka Djedovic Handanovic, Serbia’s minister of mining and energy in a caretaker mandate, announced it in Belgrade at the second Regional Energy Summit.

Four energy ministers took part: besides the host and Stavros Papastavrou, Greece’s minister of environment and energy, the others were Iva Petrova of Bulgaria and Sanja Bozinovska of North Macedonia. The meeting was titled “Energy Security for a Stronger Region.” The first summit in this format was held in Athens, and the third has been agreed for Sofia.

What are the deadlines, and what could move them?

Pipes for 15 kilometers of the route are due by the end of October. For finishing the Serbian section, Djedovic Handanovic named the first quarter of 2028, but with a condition that is not in the contractor’s hands. N1 reports that the minister stressed Srbijagas must keep resolving expropriation issues so that work can proceed on schedule.

“Our goal was to have the gas interconnection completed in the first quarter of 2028, but to achieve that, all the processes related to expropriation have to be finished,” Djedovic Handanovic said.

North Macedonia, according to Balkan Green Energy News, plans to build its segment before the end of 2028. The Greek part of the corridor branch is due to start operating by the end of 2026 at the latest, and North Macedonia’s link with Greece next year. The country currently has a gas interconnection only with Bulgaria. Bozinovska said they expect a completed link with Greece and an agreement with Serbia by the middle of next year.

Why connect gas right now?

At the summit the minister cited current energy prices. RTS carries her statement:

“Gas has gone up to 780 euros per thousand cubic meters, a barrel of oil costs about 100 dollars, and electricity prices are in the range of 180 to 220 euros per megawatt-hour and have been rising over the past three months.”

Balkan Green Energy News records that gas, in her words, passed 780 euros per thousand cubic meters. The same outlet says she also warned about the price of diesel in the Mediterranean, at 1,370 dollars per tonne. She described the situation ahead of winter by comparing it with an earlier crisis: “The situation ahead of the winter season is extremely critical, and it is much like 2022.”

Serbia holds 707 million cubic meters of gas in reserve, and that amount is growing. Greece’s export capacity is due to reach 9.5 billion cubic meters in 2027, the Serbian ministry said, while Papastavrou says Central Europe will need an additional 20 billion cubic meters a year. Papastavrou said: “Regional energy interconnection and cooperation are necessary and integral parts of ensuring our countries have secure energy,” according to N1.

What else is on the table?

The operators Transportgas Srbija and North Macedonia’s Nomagas are part of the Vertical Gas Corridor initiative. Papastavrou recalled that a month ago in Thessaloniki, 11 transmission system operators from nine countries agreed to bring Serbia and North Macedonia into the initiative. The Bulgarian section of the corridor toward Romania is due to be finished by the end of October, and at the start of next year the entry capacity from Greece and the exit capacity toward North Macedonia will grow, Petrova said.

An oil route is mentioned for the first time. Serbia and North Macedonia are considering extending the Thessaloniki-Skopje product pipeline, a former oil pipeline that was refurbished last winter, to Nis, to supply fuel. Bozinovska said her country is ready to take part in a feasibility study.

Representatives of Romania could join the next round of talks in Sofia, as Djedovic Handanovic put it: “We agreed that the next summit will be in Sofia and that in the future we will also invite representatives of Romania.”