Serbia is expected to extend its natural gas supply agreement with Russia for an additional three months, with the new arrangement set to be signed before the end of June. The extension comes amid increased volatility in global energy markets, driven by escalating tensions in the Middle East.
Despite sharp increases in natural gas prices on international exchanges, Serbia continues to benefit from its long-term contract with Gazprom. The price is determined through an oil-indexed formula with a time lag, which helps shield consumers from immediate market fluctuations. Current estimates place the import price at around €290 per 1,000 cubic meters, significantly below prevailing levels at European gas trading hubs.
A revised gas price for the upcoming period is expected to be set in the coming weeks, reflecting recent movements in global oil prices. Authorities emphasize that domestic consumers continue to pay a unified tariff approved by the Energy Agency, regardless of differences in import costs across supply sources.
Alongside Russian supplies, Serbia is gradually strengthening cooperation with Azerbaijan. Although the commercial details of the agreement with SOCAR remain confidential, Azerbaijani gas is viewed as an important diversification source. Current contracted volumes stand at up to 400 million cubic meters per year, with potential expansion toward 1 billion cubic meters annually in the future.
The Ministry of Mining and Energy stated that the extension of the Russian supply agreement is essential for maintaining security of supply, while authorities continue to monitor developments in international energy markets. It also confirmed that preparations for the upcoming heating season are progressing according to plan.
Expansion of the Banatski Dvor underground gas storage facility is ongoing. Four of the planned twelve new wells have already been completed, while discussions are also underway regarding additional storage capacity in Hungary for the 2026/27 winter season. Officials maintain that sufficient gas volumes will be secured for both households and industry.
At the same time, Serbia is preparing for construction of the Serbia–Hungary oil pipeline, a project aimed at diversifying crude oil supply routes. The government considers the pipeline strategically important, especially following previous supply disruptions that exposed risks linked to reliance on a single import corridor.
According to the Ministry, project implementation is proceeding as planned, with a contractor already selected for the Serbian section. Officials emphasize that strengthening energy diversification remains a priority, regardless of future developments in European sanctions policy or changes in regional oil and gas flows.
