Serbia to Invest EUR 100 mln in Oil Pipeline With Hungary

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Serbia plans to invest EUR 100 million in the construction of an oil pipeline to Hungary which will help diversify the country's energy sources, the country's Energy Ministry said last week, according to news portal SeeNews.

Officials of state-owned oil storage operator Transnafta, which will carry out the construction work on Serbian territory, will start talks on the technical details of the project with representatives of the Hungarian side, the ministry said in a statement.

The 128-km pipeline will link the northern Serbian city of Novi Sad to Algyő in the south of Hungary. Further details about the project were not disclosed. "The implementation of this project would ensure the diversification of crude oil supply and increase the security of supply to the Pančevo oil refinery," Energy Minister Dubravka Đedović was quoted as saying.

The Pančevo refinery is operated by Serbia's sole oil and gas group NIS, majority-owned by Russia's Gazprom.

Furthermore, the total cost of transporting crude oil would be lower compared to transport via the Omisalj oil terminal in Croatia, Đedović added.

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