Serbian and Azerbaijani companies have finalized negotiations on establishing a joint venture to build a natural gas-fired power plant near the Serbian city of Niš.
Representatives of the Serbian Ministry of Mining and Energy, and state-owned companies – power utility Elektroprivreda Srbije (EPS) and gas utility Srbijagas, concluded talks in Istanbul with Azerbaijani company SOCAR on aligning the contract on shareholders for the establishment of a joint company, according to the ministry.
The firm will oversee the development and construction of the new gas power plant in Serbia, it added.
The three companies are expected to sign the contract in Belgrade within a month, the update reads.
The exact breakdown of shareholder stakes in the joint venture has not yet been disclosed.
First joint project for EPS, Srbijagas, and SOCAR
According to the ministry, it would be a combined heat and power (CHP) plant of up to 500 MW in capacity.
The ministry expects construction to be finished within the next four years.
This marks the first joint project involving EPS, Srbijagas, and SOCAR, representing an important step toward further strengthening energy cooperation between Serbia and Azerbaijan.
The construction of the new facility will enhance the security of electricity supply and provide new generation capacity, which is essential given the country’s growing power consumption, the ministry stressed.
Agreement on the construction of the facility signed in mid-February
In mid-February, Serbia and Azerbaijan signed an agreement on the construction of a combined cycle gas-fired power plant near the city of Niš. The investment was estimated at EUR 600 million.
The agreement between the Government of Serbia and the Government of Azerbaijan on the development, design, construction, and operation of a combined cycle gas-fired power plant was signed by Serbian Minister of Mining and Energy Dubravka Đedović Handanović and Azerbaijan’s Minister of Economy, Mikail Jabbarov.
