Serbhungas to trade gas in Serbia and region, with 51% stake in Hungary’s hands

Hungarian energy company MVM has a majority stake in its joint venture with Srbijagas, which will trade in gas in Serbia and the region, daily Politika was told at the Ministry of Mining and Energy. MVM has a 51% stake in Serbhungas, while the remaining 49% is in the hands of the Serbian state-owned gas company.

MVM and Srbijagas signed the agreement on establishing Serbhungas last week, following the first meeting of the Serbia-Hungary strategic cooperation council at Lake Palić in northern Serbia.

Politika was also told at the ministry that both companies would invest in the joint venture’s equity capital, and that decisions would be made jointly. The new company will be headquartered in Novi Sad, Serbia, according to earlier announcements.

Ministry: Decisions in Serbhungas will be made jointly

MVM produces, distributes, and trades in electricity, but is also present in the gas sector. It operates nuclear power plant Paks.

Serbia, through Srbijagas, already has cooperation with Hungary on gas storage. Politika recalls that Srbijagas has an agreement for gas storage in Hungary for the 2023/2024 season.

At the signature of the agreement on setting up Serbhungas, President Aleksandar Vučić said Serbia was able to survive the previous winter thanks to sufficient gas supplies ensured by Hungary.

He added that there were 560 million cubic meters of gas left for Serbia, providing security for the upcoming winter as well.

Serbia and Hungary are also planning a joint oil pipeline

Among the documents signed at the meeting in Palić is a memorandum of understanding on the construction of the Hungary-Serbia oil pipeline. The Ministry of Mining and Energy announced at the time that the Serbian section would cost EUR 157 million.

The Serbian section of the pipeline will cost EUR 157 million

Serbian Minister of Mining and Energy Dubravka Đedović, who signed the document with Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó, said that Serbia needed the pipeline in order to diversify its oil supplies, noting that the only existing route was through Croatia.