Serbia moves to boost gas storage and network upgrades as it seeks longer-term energy resilience

Serbia is stepping up its long-term energy security program by expanding domestic gas storage and upgrading the infrastructure needed to diversify supply routes. Energy Minister Dubravka Đedović said the long-run objective is to reach 2 billion cubic meters of storage capacity, which would allow roughly half of the country’s annual gas consumption to be covered from national reserves.

Storage targets and infrastructure expansion

Officials expect ongoing projects to lift capacity significantly. Expansion work at the Banatski Dvor underground storage facility, alongside development of a new site in Tilva with a planned capacity of 300 million cubic meters, could bring total storage to around 1 billion cubic meters in the next phase.

Alongside these projects, Serbia is working with the World Bank on a broader investment program valued at approximately one billion euros. The initiative focuses on upgrading internal gas infrastructure, while authorities are also seeking European Union support—citing modern networks as essential for diversifying both supply sources and transport routes.

EU coordination and diversification amid geopolitical pressure

In discussions within a joint working group that includes the European Commission, topics ranged from oil and gas supply diversification and infrastructure development to integration into the EU electricity market. The minister also highlighted that expanding alternative supply options remains crucial for maintaining stability as geopolitical tensions affect energy availability.

Recent developments reflect this approach. The interconnector with Bulgaria has enabled gas imports from Azerbaijan, while additional connections with North Macedonia and Romania are in preparation. Construction of the North Macedonia link is expected to begin in early autumn, with domestic funding already secured. Future pipelines are also being designed with hydrogen transport in mind.

Institutional changes are part of the plan as well: Serbia is creating a dedicated company, Gas Infrastruktura, to oversee new projects and manage the national gas network.

Market stabilization measures and sanctions-related challenges

Even as global fuel prices remain volatile, Serbia says it continues government intervention in the fuel market to stabilize costs and ensure reliable supply. Strategic petroleum reserves have been strengthened, with petroleum stocks now covering nearly 80 days of average summer demand.

The government’s focus also includes operational continuity challenges tied to sanctions affecting oil company NIS. Maintaining refinery operations is described as essential for domestic supply stability. Negotiations over ownership restructuring are expected to be central to resolving the issue and potentially removing NIS from sanctions lists.

Talks involving Hungarian partners and Russian stakeholders continue under deadlines set by the Office of Foreign Assets Control (OFAC). Serbia is supporting efforts aimed at extending NIS’s operating license.

EU officials stress reform progress

Representatives from the European Commission and the EU delegation in Serbia joined the discussions. EU Ambassador Andreas von Beckerath said energy is a major area of cooperation, pointing to visible progress on reforms while emphasizing that continued collaboration remains important in today’s geopolitical environment.

Taken together, Serbia’s storage expansion plans, cross-border interconnector buildout, and institutional reforms underline an effort to reduce exposure to external shocks—while navigating regulatory and sanctions pressures that could affect key parts of its downstream energy system.