Photo: Dubravka Đedović Handanović met with Azerbaijan's Minister of Finance Sahil Babayev (Nenad Kostić / Ministry of Mining and Energy)
Minister of Mining and Energy of Serbia Dubravka Đedović Handanović met in Baku with representatives of the Cabinet of Ministers of Azerbaijan and SOCAR for discussions about the proposed construction of a gas power plant project near the city of Niš as well as about natural gas supply.
The investment value of the joint Serbian-Azerbaijani project for the construction and operation of a gas power plant is still under assessment, and its operational lifespan will be at least 25 years, Serbian Minister of Mining and Energy Dubravka Đedović Handanović said. Today in Baku, she met with Azerbaijan’s Minister of Finance Sahil Babayev, Minister of Economy Mikayil Jabbarov, President of State Oil Company of the Azerbaijan Republic (SOCAR) Rovshan Najaf and Minister of Energy Parviz Shahbazov.
“We intend to harmonize and formalize the basic provisions and commercial terms for the plant’s construction, as well as the design and construction deadlines, within the next month. With the completion of the gas power plant in 2030, gas consumption would further increase. The plant requires 600 million cubic meters of gas per year, which would also allow us to maximize the capacity of the Serbia-Bulgaria gas interconnector,” Đedović Handanović stated.
She stressed that the new gas power plant would be significantly more efficient, with lower production costs and emissions than existing ones.
“It has been recognized as a priority project in strategic documents, as well as in the Serbia 2030 program. By building it, in addition to gaining extra energy security, we are preparing for the expected rise in energy consumption related to the increased use of artificial intelligence and the construction of data centers,” the Serbian minister asserted.
Niš turning into gas pipeline hub
Đedović Handanović pointed out that Niš was chosen as it is leaning directly on the Serbia-Bulgaria interconnection, which has a capacity of 1.8 billion cubic meters per year, and the link to the Balkan Stream pipeline.
“Additionally, extra security is provided by the possibility of supplying liquefied natural gas (LNG) via interconnectors from the direction of North Macedonia and Greece, which we plan to complete by 2028,” the minister added.
Boost for economy in southern Serbia
The gas power plant will boost the economy in southern Serbia through the involvement of local companies, as a new source of electricity for industry and of heating for Niš, she stated. It is the country’s third-biggest city. Đedović Handanović pointed out that the construction of the gas power plant is the first joint venture between Serbia’s state-owned Elektroprivreda Srbije (EPS) and Srbijagas, and Azerbaijan’s SOCAR, and that they would be the lead entities in preparing the technical documentation.
“It is particularly important for Serbia that Azerbaijan, through the company SOCAR, is participating in this project not only as a gas supplier but as a strategic partner in the development of production capacity,” the minister said.
She recalled that Azerbaijan is a strategic partner of Serbia in the energy sector and the first country with which Serbia has diversified its natural gas supply.
“Gas deliveries from Azerbaijan have doubled since we began our cooperation three years ago, and last year they were approximately two million cubic meters per day,” Đedović Handanović underscored.
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