Serbia's Connecting to Druzhba Pipeline Question of Security Rather Than Profitability, Says Expert

Gas pipeline Serbia (AP Photo/Darko Vojinovic, File)

Secretary General of the Association of Oil Companies of Serbia Tomislav Micovic said on May 12 that the question with the construction of a pipeline from Hungary to Novi Sad and connection to the Russian Druzhba pipeline was not one of profitability, but rather of increasing Serbia's oil supply security.

At the moment, he said, oil is delivered to Serbia solely via the Adria Oil Pipeline, from the Croatian island of Krk to the Pancevo refinery.

"Where increasing security of supply is concerned, economic profitability is not at the forefront, we are now dependent on one port, one pipe, and something can happen at any time. The risk is too great for the state with just one option," Micovic told BETA when asked how profitable the construction of a pipeline from Hungary to Novi Sad was, aimed at Serbia's diversifying supply routes and increasing security of supply of the fuel.

Late last year, after the imposing of EU sanctions and a ban on Russian oil imports via the Adria pipeline, Serbia initiated preparations for the construction of a pipeline from the Hungarian village of Algyo to Novi Sad, which would be connected to the Russian Druzhba pipeline in Hungary.

After the announced signing of an agreement, the project is to be carried out by Serbian state-owned Transnafta company and Hungarian MOL. The pipeline would be 128 kilometers long and construction in Serbia would cost roughly EUR100 million.

Asked whether connecting to the Russian pipeline would complicate Serbia-EU relations, Micovic said that oil had been transported via Druzhba across Europe and that what had been happening for the past two years didn't mean it would be that way in the long term.