Serbia is exploring the construction of a new oil pipeline from Hungary to diversify its crude oil supply routes. Currently, nearly three-quarters of the country’s oil supply comes via the Adriatic oil pipeline, “Janaf,” from Omišalj to the Pančevo Refinery. The new pipeline, which would connect Pančevo to Algyő in Hungary, is part of a broader strategy to secure more reliable and potentially cheaper sources of crude oil.
President Aleksandar Vučić confirmed discussions with Hungarian Prime Minister Viktor Orbán about the project, which is expected to cost Serbia around €150 million. The pipeline will cover over 200 kilometers, providing an alternative supply route to the existing “Janaf” pipeline. The move is expected to reduce Serbia’s dependence on a single supply route and offer savings by enabling the purchase of cheaper Russian Urals crude oil.
Currently, due to EU sanctions, Serbia cannot import Russian oil through “Gazpromneft.” The new pipeline will connect to the “Druzhba” pipeline, which runs from Russia and is not subject to EU sanctions. The “Druzhba” pipeline, the longest in Europe at 4,000 kilometers, supplies several EU countries, including Hungary, Poland, Slovakia, and Germany.
Energy Minister Dubravka Đedović emphasized that the new route would lower transportation costs compared to the current method, where oil is transported via tankers to Omišalj and then through Croatia to Serbia. The availability of multiple supply routes would also allow Serbia to negotiate better transport tariffs.
Despite the potential benefits of this new route, some experts caution that Serbia would be more secure if it sourced oil from countries with direct sea access, such as Rijeka, Ploče, or Thessaloniki. While Hungary is currently exempt from EU sanctions due to its lack of sea access, concerns remain that future EU regulations could prevent Hungary from supplying Russian oil to Serbia. Diversifying supply routes and sources would provide greater stability and reduce reliance on a single pipeline.
In conclusion, while Serbia’s plan to build a new oil pipeline from Hungary offers promising advantages in terms of supply diversification and potential cost savings, there are ongoing concerns about the long-term security and sustainability of relying on a single route.
