The Serbian government has approved a tentative deal between state-run natural gas supplier Srbijagas and Hungarian electric utility MVM to form a gas trading joint venture
BELGRADE (Pakistan Point News / Sputnik - 19th June, 2023) The Serbian government has approved a tentative deal between state-run natural gas supplier Srbijagas and Hungarian electric utility MVM to form a gas trading joint venture.
Serbian Prime Minister Ana Brnabic gave "prior consent" for the establishment of Serbhungas with a head office in Novi Sad, in northern Serbia, according to a publication in the Serbian government's official gazette.
Serbian Finance Minister Sinisa Mali is expected to oversee the signing of the deal on Tuesday at a meeting of the Serbian-Hungarian strategic cooperation council in the border town of Palic; it will allow the two energy majors to jointly buy natural gas abroad and sell it on the Serbian market.
Hungarian Foreign Minister Peter Szijjarto said during a visit to the Serbian capital Belgrade in March that the two neighbors wanted to double the cross-border capacity of their electricity networks by 2028.
Russian energy giant Gazprom remains Serbia's only natural gas supplier and a major source of pipeline gas for Hungary, an EU member state. Serbia will start importing liquefied natural gas from Greece and transport it northward to Hungary in fall. Azerbaijan also plans to begin pumping gas to the Balkans before the end of the year.
