Serbia signed a natural gas import agreement with Azerbaijan as part of its goal to “diversify energy supply sources”. The agreement between Serbian gas group Srbijagas and Azerbaijani gas group SOCAR allows Serbia to import up to 400 million cubic meters of natural gas.[1]
Serbia, which is almost completely dependent on Russian gas supplies, has long been planning to purchase gas from Azerbaijan through Bulgaria’s pipeline. The Azerbaijani Ministry of Energy said that they expect the connection in question to be put into operation in the near future.
It is known that Serbia consumes more than 3 billion cubic meters of gas annually. In line with the agreement, Serbia will meet approximately 15% of its annual consumption directly from Azerbaijan. Thus, Belgrade took the first step towards breaking its dependence on Moscow for gas supply.
Serbia, which aims to join the European Union, has recently been under pressure from Western countries to align its foreign policy with the bloc and join in imposing sanctions on Russia. Azerbaijan is considered an alternative source of energy imports for Europe, which is in deep political disagreement with Moscow due to the conflict in Ukraine and the sharp decline in Russian gas purchases.
In 2022, most of Serbia’s annual consumption of more than three billion cubic meters of natural gas came from Russia’s Gazprom company. In addition, the Belgrade administration aims to diversify its import sources by completing a connection line with Bulgaria and purchase pipeline gas or liquefied natural gas (LNG) from other countries (including Azerbaijan).
Serbia will be able to get gas from Azerbaijan if the gas pipeline with Bulgaria is completed, and this will open the door to new collaborative opportunities in the Balkans. This cooperation will further strengthen Serbia’s position as a “transit country” in gas supplies to Central European countries. Stating that imports could increase to one billion cubic meters after 2026, Serbian Minister of Energy Đedović Handanović emphasized that this cooperation agreement will enable LNG delivery through terminals in Turkey and Greece and provide the opportunity for the construction of gas power plants and gas storage facilities.[2]
Azerbaijani Energy Minister Perviz Shahbazov stated that Azerbaijan is a new partner in diversifying Serbia’s gas market in Europe. Emphasizing that Serbia is the eighth country to which Azerbaijan supplies natural gas, Perviz Shahbazov stated that his country is a reliable energy partner that contributes to Europe’s energy security.
[1] “Sırbistan, Azerbaycan ile Doğal Gaz İthalat Anlaşması İmzaladı.”, Euronews, https://t.ly/FbHBw, (Erişim Tarihi: 15.11.2023).
[2] Aynı yer.
