The city of Leskovac in southern Serbia is continuing development of a large-scale gasification program, fully financed through the state-owned gas company Srbijagas, after local authorities signed an annex that increases the total value of the project to €86.8 million excluding VAT.
The updated agreement expands the scope of works and sets a completion timeline of four years. The Serbian construction company Rasina Energogas remains the main contractor and strategic partner responsible for executing the infrastructure works.
The original gasification contract was signed in September 2023, with Srbijagas acting both as investor and financial backer. Under this arrangement, the company provides full funding and oversees project implementation in accordance with technical and regulatory requirements, effectively making the Serbian state the sole financier of the initiative.
Local authorities described the project as one of the most significant infrastructure and environmental investments in Leskovac, emphasizing its role in reducing air pollution and lowering heating costs for households, businesses, and public institutions through wider access to natural gas.
City officials noted that several key facilities have already been connected to the gas network in earlier phases of the project, including the city’s two largest boiler plants and the General Hospital, which was previously considered one of the major sources of local pollution.
The newly signed annex adds approximately €28 million excluding VAT to the total value of the works. In parallel, preparations are underway for the selection of a site for a future metering and regulation station, which will serve as a critical component of the expanding gas distribution system.
