Azerbaijan plans to increase gas deliveries to Serbia as the two countries advance a proposed 350 MW power and 150 MW heat plant in Niš, deepening Belgrade’s access to Caspian supply while adding new gas-fired generation.
Azerbaijani officials said higher volumes would accompany development of the project.
Serbia currently receives up to 400 million cubic metres per year of Azeri gas, around 15% of annual national demand of roughly 3 bcm.
Existing arrangements include an option to increase deliveries to as much as 1 bcm/year from 2027.
Serbian utilities EPS and Srbijagas have completed negotiations with SOCAR on establishing the project company, with signing expected in the coming month.
The Niš facility would provide both electricity and district heat, improving supply flexibility in southern Serbia.
For the gas market, the strategic value is broader.
Serbia has historically depended heavily on Russian supply but is steadily building alternative commercial and physical routes through the Bulgaria interconnector and access to southern gas corridors.
Higher Azeri volumes would give those connections greater practical value.
The plant would also add dispatchable electricity capacity as Serbia expands wind and solar generation.
Gas-fired generation can respond more quickly than coal and may become increasingly valuable during evening scarcity or low-renewable periods.
The project therefore links Serbia’s gas diversification with its power-market transition.
The central question will be whether the economics of Azeri gas and power-market revenues support the new plant without increasing exposure to imported fuel costs.
