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Serbia and Romania Sign Agreement for Major Gas Interconnection Project

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In a significant move towards enhancing regional energy security, Serbia’s Minister of Mining and Energy, Dubravka Đedović Handanović, and Romania’s Minister of Energy, Sebastian Burduja, have signed a memorandum of understanding for a gas interconnection project. This strategic initiative aims to connect Serbia’s Mokrin hub with the BRUA pipeline at Petrovaselo, east of Timișoara in Romania, providing Serbia with a new source of natural gas.

The agreement outlines a capacity of at least 1.6 billion cubic meters per year for the two-way gas pipeline, which will span 13 kilometers in Serbia and 86 kilometers in Romania. The Serbian segment is slated for completion by 2027, with the entire project expected to be operational by 2028.

“We aim to commence construction next year, ensuring this project becomes a reality by 2028,” Minister Burduja stated at the signing ceremony in Kladovo, situated on the Danube opposite Romania. The interconnection site will be located at the northern border between the two nations.

Minister Đedović Handanović emphasized that this marks a new phase in the long-standing bilateral energy cooperation between Serbia and Romania, which has spanned over five decades. She highlighted that electricity trade constituted 28% of their trade exchange last year.

“By connecting with Romania and Bulgaria, and soon with North Macedonia, Serbia is positioning itself as a crucial transit country and a key partner in ensuring the energy security of Central and Eastern European nations regarding gas supply,” Đedović Handanović asserted.

Romania, which produced almost 30% of the European Union’s gas in the first quarter, has ambitious plans to boost its output further. Minister Burduja revealed that the Neptun Deep offshore gas project in the Black Sea, an investment of EUR 4 billion, is set to double Romania’s gas production from 2027. Additionally, intensive drilling at the Caragele onshore site, backed by a EUR 200 million investment program, is expected to reach full capacity this year.

Burduja also noted that Romania’s transmission system operator, Transgaz, is swiftly completing the segment from the Black Sea coast at Tuzla to Podișor in the south, the final piece of the BRUA project. The pipeline, named after Bulgaria, Romania, Ukraine, and Austria, will transport gas from offshore platforms to the western border.

Furthermore, Burduja highlighted Romania’s promotion of the Vertical Gas Corridor, an initiative to connect Greece, Bulgaria, Romania, Hungary, Slovakia, Moldova, and Ukraine, offering alternative gas supply routes beyond Russia.

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The ministers also discussed the ongoing power interconnection project between Reșița in Romania and Pančevo in Serbia, set to be completed next year as part of the Trans-Balkan Electricity Corridor. Additionally, they addressed the Đerdap 3 pumped storage hydropower plant project, a continuation of their shared hydropower efforts on the Danube with the Đerdap 1 and 2 (Iron Gate) complexes.

This agreement not only strengthens bilateral ties but also underscores the growing importance of regional cooperation in achieving energy security and sustainability in Southeast Europe.

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