Leskovac gasification project rises to €86.8 million as Srbijagas funds expanded infrastructure rollout

Leskovac, a city in southern Serbia, is pressing ahead with a large-scale gasification initiative that is fully financed by the state-owned gas company Srbijagas. After local authorities signed an annex, the total value of the project has increased to €86.8 million excluding VAT, reflecting an acceleration and expansion of the infrastructure rollout.

Expanded works and a four-year timeline

The updated agreement broadens the scope of works and sets a completion timeline of four years. Rasina Energogas, a Serbian construction company, remains the main contractor and strategic partner responsible for executing the infrastructure build-out.

State financing model since September 2023

The gasification contract was originally signed in September 2023, with Srbijagas serving both as investor and financial backer. Under this structure, the company provides full funding and oversees implementation to ensure compliance with technical and regulatory requirements—effectively positioning Serbia’s state as the sole financier of the initiative.

Environmental aims and lower heating costs

Local authorities have described the project as one of Leskovac’s most significant infrastructure and environmental investments. They say wider access to natural gas is intended to reduce air pollution while lowering heating costs for households, businesses, and public institutions.

Network connections already underway

City officials noted that several major facilities have already been connected to the gas network in earlier phases. These include Leskovac’s two largest boiler plants and the General Hospital, which had previously been viewed as one of the city’s major sources of local pollution.

Annex adds €28 million and supports future metering infrastructure

The newly signed annex adds approximately €28 million excluding VAT to the total value of the works. In parallel, preparations are underway for selecting a site for a future metering and regulation station—an element expected to play a critical role as Leskovac expands its gas distribution system.