A planned oil pipeline from Hungary to Serbia could meet all of Serbia's crude oil needs by 2028, Hungarian Foreign Minister Peter Szijjarto said Wednesday.
Construction of the pipeline, with an annual capacity of 4-5 million tons, could begin late this year or early in 2026, Szijjarto said at a news conference with Serbian Energy Minister Dubravka Dedovic Handanovic.
Ties between Serbia and Hungary have strengthened in recent years, and their leaders, Hungarian Prime Minister Viktor Orban and Serbian President Aleksandar Vucic, maintain strong relations with Russia.
The two countries agreed in 2022 to build a pipeline to supply Serbia with Russian Urals crude via the Soviet-era Druzhba oil pipeline despite the ongoing efforts by the European Union (EU) member states to wean themselves off Russian energy supplies.
While the European Union has sought to reduce reliance on Russian energy supplies since Russia's 2022 invasion of Ukraine, landlocked Hungary still receives about 80% of its natural gas and most of its crude oil from Russia.
Hungarian oil company MOL, which has refineries in Hungary and Slovakia, presented a feasibility study for the pipeline Wednesday, Szijjarto said, which was approved by both countries.
"Currently, Hungary's entire natural gas import needs can be met through Serbia. And with this new investment, Serbia's entire crude oil import needs will be met through Hungary," Szijjarto said, adding that the project would provide âa significantâ energy security to both countries.
The pipeline project includes Hungary increasing the capacity of oil flow between the Ukraine border and its Danube refinery and building a new 190-kilometer (118-mile) pipeline from the refinery to the Serbian border.
Szijjarto said the cost of the capacity expansion and the construction of the new pipeline to the border would be about 130 billion forints ($350.33 million).
Serbia, which is not a member of the EU, also relies on Russian crude supplies and has been working to find a solution to end Russian ownership in its NIS oil company since the United States imposed sanctions on the Russian oil sector in January.