Published: April 22 2023
- Reasons for constructing the new oil pipeline
- Other energy agreements between Hungary and Serbia
- Questions & Answers
Reasons for constructing the new oil pipeline
Europe is facing challenges in its energy supplies due to the war in Ukraine, increasing demand for energy after the reopening of the Chinese economy, and the lack of developed LNG capacities. Thus, the strategic energy cooperation between Hungary and Serbia can secure Hungary’s oil supplies for future periods.
In addition, Hungary is interested in developing Serbia's internal network, which would enable central Europe to access alternative sources, and the country expects the EU to finance infrastructure developments for this purpose.
Other energy agreements between Hungary and Serbia
Hungary currently obtains 9-15 million cubic meters of gas through the TurkStream pipeline from Serbia. Hungary is also a possible delivery route for the volumes of gas purchased from Azerbaijan. Hungary further plans to store 500 million cubic metres of gas for Serbia in its storage facilities, which is a part of a recently agreed framework agreement.
State-owned energy company MVM and Srbijagas will also establish a joint company soon to carry out joint gas trade activities, strengthening the presence of the two countries on the central European energy market.
This new cross-border crude oil pipeline will enhance Hungary-Serbia relations and will ensure greater security of oil supply to both countries. It demonstrates their commitment to cooperation and improvement of energy infrastructure in the region.
Questions & Answers
What is the new oil pipeline that Hungary and Serbia are planning to build? Hungary and Serbia are planning to construct a new crude oil pipeline that will connect Algyo, in southern Hungary, and Novi Sad, in northern Serbia.
What is the purpose of the new oil pipeline? The purpose of the new oil pipeline is to strengthen the security of supply between Hungary and Serbia.
When is the agreement on the new oil pipeline expected to be signed? The agreement on the new oil pipeline is expected to be signed in June.
What challenges in energy supply is Europe facing, according to Péter Szijjártó? Europe is facing serious challenges in energy supply due to the war in Ukraine.
How much gas does Hungary receive daily via the TurkStream pipeline from Serbia? Hungary receives a daily 9-15 million cubic metres of gas via the TurkStream pipeline from Serbia.
What does Hungary want to buy from Azerbaijan and what role can Serbia play in it? Hungary wants to buy volumes of gas from Azerbaijan and Serbia can be a possible delivery route for it.
What cooperation between Hungary and Serbia is being established to carry out joint gas trade activities? State-owned energy company MVM and Srbijagas will set up a joint company soon to carry out joint gas trade activities.
What is the expected completion date for doubling the transport capacity through the new cross-border power line? The expected completion date for doubling the transport capacity through the new cross-border power line is 2028.