Another interconnector gas pipeline for Azerbaijani gas is being put into operation in Europe

The commissioning ceremony of the new 109-kilometer gas pipeline between Bulgaria and Serbia (IBS) is scheduled for December 10, and a high-ranking delegation from Azerbaijan is expected to participate in it, an informed source told Turan.

Earlier in November, the Serbian state-owned company "Srbijagas" and Azerbaijan's SOCAR signed a contract in Baku, according to which, from 2024 to 2026 inclusive, Azerbaijan expressed its readiness to supply Serbia with up to 400 million cubic meters of gas per year, and in the future - 1.0-1.2 billion cubic meters per year.

Serbian Minister of Extractive Industry and Energy Dubravka Dedovic Handanovic told reporters on December 3 that this gas pipeline strengthens Serbia's position on the gas map of Europe, since the Serbia-Bulgaria gas pipeline with a capacity of 1.8 billion cubic meters per year provides gas transit from Azerbaijan and the Caspian region to Central European countries, as well as gas from the LNG terminals of Greece and Turkey.

"The Serbia-Bulgaria gas pipeline is the first major energy project that was completed on time, in 12 months. 109 kilometers of the new gas pipeline (Nish-Dimitrovgrad-Sofia), four measuring and one regulating stations in Pirot, Dimitrovgrad, Bela Palanka and Nish, as well as one large transshipment station in Trupala were laid. It is expected that the pipeline will be launched in test mode by the end of the week," the Minister said.

According to the Minister, the Serbia-Bulgaria gas pipeline is also important because of the gasification of the southeastern part of Serbia and the process of "green" transition, in which it is important to have reliable supplies of "blue fuel".

The total cost of the Nis–Dimitrovgrad–Bulgaria gas pipeline is 85.5 million euros, of which the "European Investment Bank" (EIB) has provided a loan of 25 million euros, 49.6 million is non—refundable co-financing by the European Union from the IPA accession funds, and the remaining costs will be covered from the Serbian budget and funds of the state company "Srbijagas".

The agreement on the construction of the Nish—Dimitrovgrad gas pipeline was signed in 2010.

Bulgaria has been receiving Azerbaijani gas since 2021, and in early 2024 it will receive liquefied natural gas through the port of Alexandropoulos in northern Greece.

Thanks to IBS, Belgrade will reduce its energy dependence on Russia, which has been the sole supplier of gas to Serbia for a quarter of a century.

Serbia will become Azerbaijan's new (eighth) partner in diversifying the European gas market.

At present, Serbia imports almost all of its gas from the Russian energy giant "Gazprom", and domestic production covers only about 15% of its needs.

The last long-term contract with "Gazprom" expired at the end of 2021, but in May 2022 the parties extended cooperation for another 3 years, and Serbia receives Russian gas at a price of about $300 per 1000 cubic meters (commercially attractive terms).

The price of Azerbaijani gas for Serbia is kept secret.