May 12 (SeeNews) - Hungarian oil and gas group MOL will sign an agreement with Serbia’s Transnafta on June 20 for the construction of a 128-km oil cross-border oil pipeline, Hungary's minister of foreign affairs and trade Peter Szijarto said.
"The agreement will be signed at the next joint session of the two governments," Szijjarto said during a news conference in Belgrade on Wednesday.
The planned pipeline will connect the northern Serbian city of Novi Sad to Adje in the south of Hungary.
In February, Serbia said it plans to invest 100 million euro ($108.8 million) in the pipeline which will help diversify the country's energy sources.
Prior to the EU embargo on imports of Russian crude oil that came into effect on December 5, Serbia had received Russian oil via the Adriatic pipeline from a terminal in the Croatian port of Omisalj.
Serbia is already importing oil from Iraq and other countries. Imports from Russia meet about 50% of the country's needs, 30% comes from other suppliers, and 20% is covered by domestic production.
$ = 0.9189 euro