Serbia awards contract for strategic oil pipeline to Hungary, targeting supply diversification

Serbia has moved forward with a key energy infrastructure project by awarding the contract for a planned oil pipeline linking the country with Hungary. The decision matters for investors and energy planners because it advances Serbia’s stated goal of strengthening energy security while diversifying crude import routes—at a time when the country relies heavily on deliveries routed through Croatia.

Contract award and consortium structure

The contract for construction of the planned pipeline has been awarded to a consortium led by MVM Juzna Backa. The award follows a procurement process that had been suspended and later extended by Serbian pipeline operator Transnafta.

The project is estimated at approximately €148 million, including VAT, positioning it among the largest recent energy infrastructure investments in Serbia. Alongside MVM Juzna Backa, the consortium includes Konvar, Delta Inzenjering, Zavod za zavarivanje, Celik Backi Jarak, and Delta Preventing. MVM Juzna Backa is expected to carry out the largest share of the work, representing around 43% of the overall contract value.

Tender timeline and national importance

Serbian authorities originally launched the tender shortly before the end of last year. In procurement documentation, they described the pipeline as a project of national importance intended to bolster Serbia’s energy security and diversify crude oil import routes.

Why the Hungary link changes Serbia’s supply options

At present, Serbia imports most of its crude oil through Croatia using the JANAF pipeline system. Under current plans, connecting to Hungary will provide an alternative supply route through the Druzhba Pipeline network, which transports crude oil across much of Central and Eastern Europe.

The new line is planned to be designed for REB crude, also known as Russian Export Blend. This is expected to support Serbia’s broader efforts to reduce reliance on a single import corridor.

Route details and capacity targets

The Serbian section is set to begin near the Horgos border crossing close to Hungary and run south toward Transnafta’s terminal in Novi Sad. The route will pass through Kanjiza, Senta, Ada, Becej, and Zabalj before reaching Novi Sad.

On Serbian territory, the underground pipeline is expected to stretch for about 113 kilometers and deliver an annual transport capacity of around 5.5 million tons of crude oil. Serbian authorities have framed the project as a strategic element of long-term energy infrastructure development and as part of wider supply-route diversification efforts.