Serbia and Azerbaijan sign a shareholders’ agreement to develop a 500 MW combined-cycle gas power plant in Nis, with a joint venture between EPS, Srbijagas, and SOCAR.
Serbia and Azerbaijan have signed a shareholders’ agreement to develop a 500 MW combined-cycle gas power plant in the Serbian city of Nis. The agreement between Serbia’s state-owned energy companies Elektroprivreda Srbije (EPS) and Srbijagas and Azerbaijan’s SOCAR also provides for the establishment of a joint venture to oversee the project.
Under the agreement, EPS and Srbijagas will jointly hold a 50 percent stake in the new venture, while SOCAR will own the remaining 50 percent. The document defines the partners’ rights and responsibilities, joint management arrangements, decision-making procedures during the preparatory phase, and financing of development activities.
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The partners plan to complete the plant within approximately four years, subject to the completion of technical, economic and feasibility studies and a subsequent investment decision. A preliminary feasibility study has already been completed, while planning documentation and a study on connecting the facility to Serbia’s transmission system are also under development.
Serbia’s Mining and Energy Ministry said the project is intended to support electricity supply security as domestic power consumption increases. The facility is also expected to provide additional generation capacity and help balance Serbia’s electricity system. Serbian officials have described natural gas as a transition fuel that can support the country’s energy transition while reducing dependence on more carbon-intensive fuels.
The project is part of growing energy cooperation between Serbia and Azerbaijan. The two countries signed an earlier agreement in February covering the development, design, construction and management of a gas-steam cycle power plant in Serbia. The Niš project represents the first joint venture involving EPS, Srbijagas and SOCAR.
Azerbaijan is also expanding its role as a natural gas supplier to Serbia. Serbian officials have discussed securing additional Azerbaijani gas supplies for the planned plant, with estimates indicating that its operation could require around 600 million cubic metres of gas annually.
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SOCAR said the partners will jointly prepare the technical feasibility study and work toward a joint investment decision after the preparatory activities are completed. The project is therefore moving into a detailed assessment phase before construction and financing arrangements are finalised.