Serbia considering crude pipeline link to Druzhba

Serbia could open a new crude import route by adding a pipeline connection between its 110,000 b/d Pancevo refinery and the Druzhba system that transports Russian crude into Europe.

The Serbian energy ministry said a project is in the "idea phase" to connect the NIS-operated refinery with Szeged in southeast Hungary and then with Druzhba pipeline further north. It would have capacity to transport 1.0mn-2.5mn t/yr (20,000-50,000 b/d), but this is not final, and no timeframe or specific investment value can be attached to the plan either, the ministry said.

The ministry said the connection would improve Serbia's energy security. It receives crude imports only from the Croatian port of Omisalj through the 400,000 b/d Adria pipeline. The link from Hungary would transport crude produced in Russia, Hungary and western Romania, it said, without giving further details.

Hungarian integrated Mol produces crude near Szeged and NIS, which majority-owned by Russia's Gazpromneft, started trial production at its Teremia oil field in western Romania in 2019. It has tested its Romanian crude at Pancevo. Neither Mol nor NIS replied to questions about the Pancevo-Szeged pipeline project.

NIS has reserved a higher share of capacity on Adria for 2022 than it did last year, signing an agreement with operator Janaf to transport 3.2mn t of crude, up from 2.75mn t under last year's contract. NIS will use the capacity on a take-or-pay basis and can increase or decrease it by 10pc, Janaf said.

The Serbian stretch of the pipeline from Omisalj is operated by state-owned Transnafta, which has been seeking to develop domestic oil product pipelines. The energy ministry has reiterated plans to build a product pipeline from Pancevo to Smederevo and Novi Sad, although it did not give details.

By Bela Fincziczki