In terms of providing conditions for realization of national interests in the field of energy infrastructure development and diversification of routes for crude oil supply of the Republic of Serbia, and for the purpose of energy security, TRANSNAFTA AD Pancevo has initiated the preparation of planning and design and technical documentation for Hungary-Republic of Serbia oil pipeline construction.
Considering that Republic of Serbia is supplied with crude oil only from one direction from the Republic of Croatia, the route frm Hungary was considered because through its territory is passing Druzhba oil pipeline, by which te part of Europe is supplied. The new oil pipeline would be laid from the border of the Republic of Hungary in the corridor of gas pipeline “border of Bulgaria – border of Hungary“ (Balkan Stream) to Gospodjinci and further in the corridor of the oil pipeline US Tisa – Novi Sad to Novi Sad Terminal in the length of approximately 120 km and capacity of 5,5 MTA.
Construction of the new oil pipeline to Hungary will provide the more secure supply of the domestic refinery and thereby the domestic market as well. This project is planned with the Basic Principles of the Plan for Energy Infrastructure Development and Measures for Energy Efficiency to 2028 with Projections to 2030, where the project of the Oil Pipeline Hungary- Serbia is the first delegated on the list of priority projects in the oil and petroleum products sector.
Ministry of Mining and Energy of the Republic of Serbia and Ministry of Foreign Affairs of the Republic of Hungary have signed the Memorandum of Understanding on Construction of the Oil Pipeline Hungary – Republic of Serbia on June 06, 2023 within the first session of Strategical Council for Cooperation of Serbia and Hungary.
By the end of 2023 the oil pipeline is declared as the project of significance for the Republic of Serbia whereby the conditions were met to start up the investment. At the beginning of 2024 the tender and the negotiation procedure were finished, the manufacturers of the Spatial Plan of the Special Purpose Area and the project and technical documentation were chosen, by which the realization of the investment is commenced.
Crude oil and petroleum products storage has the significant role in ensuring security of energy supply, especially in case of market disruption caused by shortages usually followed by energy prices increase.
By the EU Directive 2009/119/EC member states are obliged to maintain emergency stocks of crude oil and petroleum products in quantity of 90 days of average daily net imports or 61 days of average daily inland consumption. Signing the Agreement on the Energy Community of South-East Europe and gaining the EU membership candidate status, and in accordance with the above Directive, the Republic of Serbia is obliged to provide conditions for keeping the required amount of crude oil and petroleum products that will amount 1 million tons in 2020.
A the beginning of 2009 TRANSNAFTA JSC Pancevo
was registered for crude oil and petroleum products storage activity and in September the same year, the Company obtained the license for crude oil storage for the existing tanks at the terminal in Novi Sad. In January 2011, the Company obtained the license for crude oil, petroleum products and bio-fuels trading. Diversification of the activities and implementation of development projects will position TRANSNAFTA JSC Pancevo
as an important factor on the market for liquid hydrocarbons safe supply. The Company plans to develop crude oil and petroleum products storage capacities with the activity of keeping crude oil and petroleum products emergency stocks, as well as providing of commercial services in petroleum products storage and trading activities.
In accordance with the Contract on Storage of Crude Oil concluded with the Directory for Reserves of Energy – Generating Products / Ministry of Mining and Energy, all Transnafta JSC available capacities for crude oil storage at Novi Sad Terminal are completely full in 2019.
Pursuant to above, it is expected in the coming period to continue the storage of crude oil and also filling the future storage capacities.
In accordance with the Contract on Storage of Petroleum Products concluded with the Directory for Reserves of Energy – Generating Products / Ministry of Mining and Energy, the occupancy of Ledinci Storage Capacities available for storage of petroleum products is approximately 100% in 2019.
Petroleum products pipelines ensure the safest and the most cost-effective transport of petroleum products to consumer centres, modern products management, reduced losses and reduced leakage possibility. Projected transport of petroleum products (petrol and diesel fuel) will be performed through pipelines in length of approx. 400 kilometres, from the Oil Refinery in Pancevo in three directions, via Novi Sad to Sombor, via Smederevo and Jagodina to Nis and towards Belgrade. Petroleum products storage terminals will be located on these sites, wherefrom the supply to gravitating regions would be performed.
Petroleum Products Pipeline System through Serbia is the project of national interest, because it contributes security of supply, energy efficiency, preserving and protection of the environment, reduced dependence on weather conditions during transport, as well as the steady regional development.
Construction of the First Facility of the Products Pipeline System is envisaged in three phases: construction of the products pipeline connecting Oil Refinery in Pancevo with the existing storage tanks in Smederevo and Novi Sad; construction of new storage tanks in Pancevo and Smederevo and providing conditions for further transport.
Pan European pipeline (PEOP) is the energy corridor that provides sustainable and diversified sources of energy, both for the countries of the European Union and the countries along the corridor rout. It is recognized as a project of pan-European interest with a mechanism that contributes to safe, sustainable, efficient and competitive European energy network.