The contract for the construction of the planned oil pipeline linking Serbia and Hungary has been awarded to a consortium led by MVM Juzna Backa, following a procurement process that had previously been suspended and later extended by Serbian pipeline operator Transnafta.
The total value of the project is estimated at approximately 148 million euros, including VAT, making it one of the largest recent energy infrastructure investments in Serbia.
Alongside MVM Juzna Backa, the selected consortium includes Serbian companies Konvar, Delta Inzenjering, Zavod za zavarivanje, Celik Backi Jarak, and Delta Preventing. MVM Juzna Backa is expected to perform the largest share of the work, accounting for around 43 % of the overall contract value.
The tender process was originally launched shortly before the end of last year. In the procurement documentation, Serbian authorities described the pipeline as a project of national importance, aimed at strengthening the country’s energy security and diversifying crude oil import routes.
Currently, Serbia imports most of its crude oil through Croatia using the JANAF pipeline system. The future connection with Hungary is intended to provide an alternative supply route through the Druzhba Pipeline network, which transports crude oil across much of Central and Eastern Europe. According to project plans, the new pipeline will be designed to transport REB crude, also known as Russian Export Blend.
The Serbian section of the pipeline will start near the Horgos border crossing close to Hungary and continue south toward the Transnafta terminal in Novi Sad. The route will pass through the municipalities of Kanjiza, Senta, Ada, Becej, and Zabalj before reaching Novi Sad.
The underground pipeline on Serbian territory is expected to extend for approximately 113 kilometers and will have an annual transport capacity of around 5.5 million tons of crude oil. Serbian authorities consider the project a strategic component of the country’s long-term energy infrastructure development and broader efforts to diversify supply routes.
