Serbia is expected to extend its existing natural gas supply agreement with Russia for an additional six months, as negotiations continue amid complex market and regulatory challenges. The current contract, due to expire at the end of March, is a long-term arrangement supported by periodic annexes.
According to Srbijagas CEO Dušan Bajatović, extending the deal represents the most realistic short-term solution, given ongoing issues such as European sanctions and payment mechanisms. While international gas prices recently hovered around $350 per 1,000 cubic meters, Serbia continues to receive Russian gas at a lower contracted price of about €270 per 1,000 cubic meters.
Serbia’s supply security relies heavily on the Balkan Stream, which remains fully operational. Beyond covering domestic consumption, the pipeline is a key regional transit route, making it a central element of Serbia’s energy system amid volatile markets and geopolitical pressure.
Alternative supply options are limited in the near term. Increased imports from Azerbaijan are not currently feasible, and Serbia’s participation in the EU joint gas purchasing mechanism has yet to yield concrete offers, despite interest in procuring around 500 million cubic meters through that channel.
Meanwhile, Belgrade continues to pursue long-term diversification via new interconnector projects, particularly toward North Macedonia and Bulgaria, though these initiatives are technically complex and the North Macedonia interconnector is not expected before 2027.
Despite regional uncertainties, domestic gas supply remains comfortable. Storage at Banatski Dvor holds about 400 million cubic meters, the highest level of domestically secured gas in Serbia’s history. With these reserves, authorities anticipate no supply disruptions through the end of the heating season, and household retail gas prices are expected to remain unchanged.
