Pipeline “Druzhba” Option for Alternative Direction of Russian Oil Supply – Potential Connection by Pipes with Hungary

After the adoption of the eight package of EU sanctions, in which the countries of the Western Balkans are not exempt from the ban on import of crude oil from Russia by sea, the Ministry of Mining and Energy of Serbia announced that it was looking into all the options of securing the diversification of crude oil supply.

– In order for Serbia to have security in the supply of crude oil which is processed at the Pancevo Refinery and meets the need of the local market, it is necessary to have the option of getting oil from several directions. The ministry has already projected that possibility and included suitable projects in its investment plan, which entail the construction of new oil pipelines, in addition to the existing JANAF – the announcement says.

In that sense, the plan is to secure the diversification of crude oil supply by connecting with the Druzhba pipeline.

There are two options for connecting to the Druzhba oil pipeline. The first is to build a pipeline to Szeged, to Algyo. The route of that pipeline, which would secure a partial capacity for the supply of the Pancevo Refinery, would be around 128 km long, of which 104 km would be in the territory of Serbia, and the estimated value of the investment is EUR 83 million, that is, 64 million for the construction in the Serbian territory.

The second option for connecting to the Druzhba pipeline near Budapest is to build a pipeline to Novi Sad from Szazhalombatta, 400 km long, and the estimated value of the investment is around EUR 240 million.

Connecting with the Druzba pipeline means the possibility for the market in Serbia to keep getting Russian crude oil.

– Both options are being analyzed and, in line with the efficiency and the value of the investment, the time frames and the conditions under which the diversification can be done, we expect the Government of Serbia to adopt the suitable decisions on the construction of the new oil pipeline. The capacity of the oil pipeline would be harmonized with the processing capacity of the local refinery in Pancevo – the ministry announced.

Ministarstvo rudarstva i energetike Republike Srbije

Vlada Republike Srbije

Ministry of Mining and Energy

Government of Serbia

Jadranski naftovod

JANAF

Druzhba oil pipeline

Pancevo Refinery

Russian oil

oil supply

import of crude oil

construction of oil pipeline from Novi Sad to Szazhalombatta

construction of oil pipeline to Szeged