Serbia to sign agreement on gas power plant with Azerbaijan

Serbia has completed the negotiations with Azerbaijan on the construction of a natural gas power plant near the city of Niš, according to Ana Brnabić, the Speaker of the National Assembly. She also said an agreement has been reached on additional quantities of gas that would be supplied to Serbia from the Caucasian country.

The negotiations for the construction of a gas power plant in Niš have been completed, Ana Brnabić said. She added that the facility would be a joint project between Azerbaijan and Serbia, RTS reported.

In mid-November last year President of Serbia Aleksandar Vučić revealed that the government was starting talks with Azerbaijan on a possible joint construction of a 1 GW gas power plant in Niš, or two smaller units.

The agreement would likely be signed during the first meeting of the strategic cooperation council

Speaking during her visit to Azerbaijan, Ana Brnabić underlined that the signing of the gas power plant agreement would likely occur in the first meeting of the bilateral strategic cooperation council, when it is most convenient for the presidents, Aleksandar Vučić and Ilham Aliyev.

The investment near Niš would serve as an additional, significant stimulus and guarantee for Serbia’s energy security and stability, she stressed. The gas power plant will have a capacity of around 500 MW, which is of huge significance for Serbia, according to Brnabić.

The investment is estimated at EUR 600 million, she added.

An agreement reached on additional quantities of natural gas will be signed in the coming weeks

The country’s draft 2040 energy strategy includes a plan for a gas-fired cogeneration plant in Niš of 150 MW in electricity capacity and another 100 MW for heat. Another one would be built in Novi Sad. It is envisaged at 350 MW and 100 MW, respectively.

Earlier, Serbia’s Minister of Mining and Energy Dubravka Đedović Handanović stressed that the gas power plant project is important for generating baseload energy and providing the security of supply.

Brnabić also said an agreement on additional quantities of gas has been reached and that the plan was to sign it in the coming weeks. Serbia already has quantities contracted with Azerbaijan, but additional amounts have been secured at the request of President Aleksandar Vučić for the winter months, she explained.