Outlining the objectives of the initiative, Handanović said, “We are working on concrete steps to launch a one billion euro project through which we will strengthen and modernize the internal gas infrastructure, institutional capacities and provide support for reform activities with the World Bank.”

“In the first phase, we will build the first section of the Niš-Velika Plana gas pipeline. The new gas pipelines that we build through this project will enable us to use the full potential of gas interconnections with neighboring countries, which means greater energy security, as well as strengthening our position as a transit country and gas hub in this part of Europe, which also brings us greater revenues. The southern and eastern parts of the country will gain greater access to gas, which is important for the development of industry and attracting investments,” she added.

Future Phases to Expand Capacity and Strengthen Project Coordination

The Minister explained that subsequent stages of the EUR 1B gas program are designed to expand the capacity of the existing natural gas transport network while also providing for the construction of compressor stations and the enlargement of underground gas storage capacities. According to her, these measures are expected to improve system security, reinforce regional connectivity, and enhance the flexibility of the overall gas system.

Discussions with the World Bank delegation also addressed the financing process and the organization of project management as preparations continue.

“The working group for project coordination will consist of representatives of the Ministry of Mining and Energy, gas sector companies “Gas Infrastructure”, “Transportgas”, “Srbijagas” and other relevant parties. Until funding is approved, this working group will coordinate the preparation and implementation of the project, so that all activities are carried out within the planned deadlines,” she said.

The meeting further reviewed the implementation timeline for the EUR 1B gas program, including the World Bank’s financing approval procedure, the establishment of a project implementation unit, and the institutional support required to advance the initiative.

Strategic Development and Production Timeline

“This has been the culmination of eight years of work since we were awarded the blocks in 2017, discovery in 2019, second discovery last year,” John Ardill, ExxonMobil’s vice president for exploration and new ventures, said.

“This declaration of commerciality takes us from looking for energy to developing energy,” Ardill added.

Cypriot President Nikos Christodoulides described the agreement regarding the Cyprus gas fields as a milestone of strategic importance for the nation. Further plans include final investment decision for the assets in 2029, with production slated for a start in 2033.

Infrastructure and Regional Energy Security

ExxonMobil plans to resume drilling activities later this year as part of the Pegasus appraisal program, while also expanding exploration into Blocks 4 and 10A of the Cypriot exclusive economic zone (EEZ).

The preferred development option involves a subsea pipeline connecting the Cyprus gas fields to existing liquefied natural gas infrastructure in Egypt, utilizing established bilateral agreements and current facilities. While an onshore terminal remains a possibility, it would require larger reserves than those currently identified.

Cyprus’ Energy Minister Michael Damianos announced that Cyprus expects to launch a new offshore licensing round within the next two years. Cyprus is strengthening its poition as a strategic contributor to the energy security Europe requires. It has been fifteen years since the first Cyprus gas discovery at the Aphrodite field.

To that end, Cyprus has delineated its EEZ INTO 13 offshore exploration blocks with licenses to varipus international energy companies.

The memorandum was signed by Ibrahimaj, Karakaçi, and ENI CEO Claudio Descalzi. According to Ibrahimaj, the agreement represents a significant milestone for the country’s energy and economic priorities. She noted that the cooperation with ENI S.p.A. will contribute to a feasibility study focused on establishing national oil and gas supply and storage capacities. Through this initiative, Albania’s energy security is expected to be strengthened while creating a framework for future development of strategic infrastructure.

Feasibility Study to Examine National Capacity Expansion

The planned project is intended to improve supply security, encourage economic growth, and reinforce Albania’s position within the regional energy landscape. Government officials view the energy sector as both a strategic requirement and an important contributor to economic competitiveness and development.

Ibrahimaj stated that the study will evaluate how Albania’s oil resources can deliver greater economic value. She added that revenues generated from the sector could subsequently be directed toward national development initiatives.

The broader vision also includes establishing Albania as a regional center for energy storage, logistics, and trading activities. Authorities believe this approach could generate benefits for related industries, including ports and transportation.

Working Group to Prepare Business Plan

A joint working group will begin operating immediately following the signing of the agreement. During the next three months, the team will carry out technical, legal, and financial assessments before developing a structured business plan for a company intended to serve domestic market requirements.

According to Ibrahimaj, the long-term objective is the creation of a profitable state-owned company capable of efficiently utilizing national capacities while increasing revenues for the Albanian economy. The memorandum is regarded as another important step in strengthening the strategic partnership between Albania and Italy, particularly as energy diversification continue to rank among the region’s leading priorities.

A substantial share of the planned the €13 billion investment will be directed toward Italy’s gas infrastructure. According to the company, $9.5 billion (8.3 billion euros) has been allocated for the development, digitization, and repurposing of gas networks across the country. This allocation marks a 4.0% increase compared with the previous plan. The Italgas Strategic Plan also includes investments beyond Italy, with expansion and network development activities in Greece set to receive $1.14 billion (1.0 billion euros) through 2032.

Smart Networks and Renewable Gas Integration

Operating under the theme “Lead. Innovate. In a changing world”, the company’s new strategy places significant emphasis on flexible smart networks as a means of strengthening energy security. These networks are expected to support the integration of renewable gases, including hydrogen, biomethane, and synthetic methane. The rollout of smart meters is another central component of the Italgas Strategic Plan, reflecting the company’s focus on modernization and digital transformation.

In addition to infrastructure spending under the €13 billion investment, Italgas has earmarked $570 million (500 million euros) through 2032 for potential merger and acquisition (M&A) opportunities within the gas distribution sector. The company stated that the planned investments will enhance the security and resilience of its network while making grid operations increasingly intelligent and adaptable. Such upgrades are viewed as essential for accommodating growing volumes of renewable gases, including biomethane, hydrogen, and synthetic methane.

Artificial Intelligence at the Core of Growth Strategy

Highlighting the role of technology in the company’s future, Italgas emphasized that artificial intelligence has become a fundamental element of its operational approach.

Commenting on the Italgas strategic plan, Italgas CEO Paolo Gallo said, “Artificial Intelligence is an integral part of Italgas’ operating model and lies at the core of this Plan. Applied to operations, business processes and customer management, our “agents” are already generating significant efficiencies while improving service quality.”

“The 13 billion euros of investments will make our network even smarter, more widespread and flexible, ready to accommodate also green molecules and support an energy system increasingly exposed to international instability and commodity market volatility,” he added.

The comprehensive shareholders’ agreement outlines the operational framework for NIS, detailing the structure and decision-making processes for its governing bodies, as well as its long-term strategic objectives. This NIS management pact is designed to ensure the continued development of NIS, secure energy supply for the Serbian market, and maintain the operational capacity of the Pančevo oil refinery.

Key Terms and Conditions of the Agreement

Spearheaded by Minister Dubravka Đedović Handanović, the agreement signifies a commitment to a stable future for NIS. According to the Ministry of Mining and Energy, the pact enables MOL Group, should it become the majority owner, to steer NIS’s continued growth. A key provision in the future NIS management agreement ensures that the Pančevo refinery will operate at its pre-sanctions capacity for a minimum of ten years. This commitment is particularly important given the geopolitical landscape. In addition to the management framework, the agreement includes provisions for Serbia to acquire an additional 5% stake in NIS.

“The agreement also ensures that there will be no disruption in the operations of subsidiaries, including Petrohemija. Our representatives on the board of directors will have greater influence over decisions that are made,” Đedović Handanović said.

“NIS is critical energy infrastructure that affects our GDP, and, as we have publicly communicated over the past months, the state has managed to reach an agreement with Hungary’s MOL Group as a potential buyer of NIS, which will protect our market and security of supply if they reach a sale agreement,” she stressed.

Acquisition Contingencies and Regulatory Hurdles

The finalization of this shareholders’ agreement on  NIS management is contingent on several factors. MOL Group is actively engaged in negotiations with Gazprom Neft for the acquisition of its substantial 56.15% stake in NIS. The transaction is also subject to further regulatory approvals, including a critical sign-off from the U.S. Office of Foreign Assets Control (OFAC).

MOL Group’s Perspective and Future Outlook

Zsolt Hernádi, Chairman and CEO of MOL Group, expressed optimism regarding the management agreement, describing it as a product of constructive dialogue with the Serbian government. He highlighted that the pact will pave the way for efficient and professional management of NIS under MOL’s majority ownership, bringing an end to a prolonged period of uncertainty for the company.

Hernádi affirmed MOL’s commitment to strengthening NIS and enhancing its profitability, aiming to be recognized as a dependable partner for Serbia. He reiterated that the acquisition process is ongoing and requires a definitive agreement with the seller, alongside the necessary U.S. approvals. Hernádi believes the successful completion of the transaction will bolster energy supply security across the region and foster greater cooperation among energy firms in Central and Eastern Europe.

As part of the agreed arrangement, Chevron will acquire a 70% participating interest in the Block 10 offshore gas concession and will serve as the operator, while Greek energy company HELLENiQ ENERGY will maintain the remaining 30% stake. The transaction is expected to be finalized within the next few days once all remaining administrative procedures have been completed by the ministry, the Hellenic Hydrocarbons and Energy Resources Management Company (HEREMA), and through foreign direct investment clearance.

Situated offshore from the Kyparissia Gulf in the southern Ionian Sea, the Block 10 offshore gas concession has already progressed through its first and second exploration stages. Those phases included extensive geological, geophysical, and environmental assessments designed to evaluate the area’s hydrocarbon potential. During 2022, the consortium gathered 1,210 kilometers of 2D seismic data along with 2,416 square kilometers of 3D seismic data, covering 88% of the concession area. With Chevron’s entry now approved, the newly formed Chevron-HELLENiQ ENERGY partnership will undertake a detailed review of the available seismic information before making a decision on advancing to the third exploration phase. That stage would involve the drilling of an exploratory well.

The latest approval gives Chevron its fifth offshore position in Greece through cooperation with HELLENiQ ENERGY. Prior to securing participation in the Block 10 offshore gas concession, the companies had already obtained rights to four additional offshore blocks located south of Crete and the Peloponnese, further expanding the country’s offshore exploration portfolio.

The meeting that confirmed the approval was attended by Energy Minister Stavros Papastavrou, Deputy Energy Minister Nikos Tsafos, U.S. Ambassador Kimberly Guilfoyle, HEREMA CEO Aristofanis Stefatos, Chevron’s Middle East and North Africa Exploration Director Andrew Deighan, and HELLENiQ ENERGY CEO Andreas Shiamishis.

Papastavrou described the move as part of Greece’s broader strategy to develop its national energy resources, strengthen energy security, and attract major international investors. Ambassador Guilfoyle emphasised the importance of the partnership for regional energy stability in Southeastern Europe.

The development comes as Greece continues to advance its offshore energy programme in accordance with international law. Block 10 is located in the Ionian Sea and lies outside the most contested maritime areas south of Crete. The immediate priority for Chevron and HELLENiQ ENERGY will be to complete their assessment of the existing seismic data and determine whether the project should proceed to exploratory drilling.

The Rebound project is set to leverage the Alcohol-to-Jet (AtJ) technological pathway. This method converts advanced ethanol, derived from agricultural and forestry residues, into a drop-in aviation fuel. This SAF can be seamlessly blended with conventional jet fuel and utilized in existing aircraft engines without modifications, offering a practical solution for immediate emissions reduction in aviation.

With an anticipated annual production capacity of around 160,000 tons, the SAF production project is expected to be one of the largest of its kind in Europe. This expansion of SAF production capacity is critically timed, given the increasing regulatory pressure and market demand. Under the European Union’s Refuel EU Aviation regulation, SAF blending mandates are set to rise significantly, reaching 6% by 2030 and escalating to 70% by 2050. This regulatory landscape anticipates an eightfold increase in SAF demand between 2030 and 2050, underscoring the strategic importance of projects like Rebound.

The consortium partners have committed to funding the initial development phase of the France SAF production project. This phase includes crucial engineering studies and other preparatory activities necessary for a Final Investment Decision (FID). Technip Energies will spearhead the project as the lead developer and engineering service provider, contributing its extensive expertise in technology scaling and complex project execution. Airbus and Safran, both global leaders in the aerospace sector, are joining as industrial partners and will play a role in facilitating SAF offtake. Tereos, a prominent European ethanol producer and French agricultural cooperative, is set to supply the advanced ethanol required for the project.

This collaborative effort covers the entire value chain, from feedstock supply to the end-use in aviation, positioning it as a comprehensive, European-led initiative in the development of Sustainable Aviation Fuel. A significant initial milestone has already been achieved with the Port of Dunkirk awarding Technip Energies an industrial site. This location offers considerable logistical advantages for the transport of feedstock and finished products, alongside a potentially streamlined permitting process.

The partners will proceed through a structured development process. Key upcoming steps include the selection of the technology licensor, permitting activities, the launch of Front-End Engineering Design (FEED) work, finalizing feedstock supply and SAF offtake agreements, and securing the necessary financing for the construction phase of the facility. The formal establishment of the Rebound joint venture is anticipated in the latter half of 2026, subject to customary closing conditions and approvals, marking a crucial step for the SAF production project.

Benjamin Lechuga, Chief Strategy and Sustainability Officer of Technip Energies, said, “With Rebound, we are putting into practice our strategy to capture greater value through adjacent business models, originating and developing projects in fast-growing energy transition markets alongside recognised industry leaders such as Airbus, Safran and Tereos. We look forward to advancing this project with the engineering rigor and disciplined execution that define Technip Energies.”

Julie Kitcher, Chief Sustainability Officer and Communications of Airbus, said, “The Rebound project is a vote of confidence in SAF and in Europe’s ability to be a leader in the journey to decarbonise aviation.”

Nathalie Stubler, Chief Sustainability Officer of Safran, said, “This ambitious project brings together leading French and European expertise, supporting the emergence of a competitive SAF industry.”

Jérôme Bos, Chief Strategy Officer of Tereos, said, “We are delighted to contribute, through Rebound, to the emergence of the Alcohol-to-Jet industry in France, supporting the decarbonization of the aviation sector.”

The collaboration between Chevron and Helleniq Energy is not new. The two entities are already partners in multiple offshore exploration blocks recently awarded by Greece. With this latest application for a Greek offshore exploration block, Chevron intends to further solidify its operational presence and assume the role of operator for an additional exploration area.

Stavros Papastavrou, Greece’s Minister of Energy and Environment, said, “Chevron’s decision to participate in yet another offshore area of our country together with Helleniq Energy is a significant milestone in the national effort to develop the oil and gas sector.”

“Greece is constantly strengthening its position on the energy map of the Eastern Mediterranean,” he added.

Earlier this year, a consortium led by Chevron, which includes Helleniq Energy, finalized lease contracts for oil and gas exploration activities offshore Greece. This initiative aligns with Greece’s strategic objective to emerge as a prominent gas supplier in the Mediterranean region. In February, the Chevron-Helleniq Energy partnership formalized lease agreements with Greece concerning the exploration of four distinct offshore blocks. These areas are located south of Crete and the Peloponnese.

Collectively, these four offshore blocks – identified as South Crete 1, South Crete 2, South of Peloponnese, and Block A2 – span an expansive territory of approximately 47,000 square kilometers, which equates to roughly 18,147 square miles. Under the established terms of these lease agreements, the joint venture between Chevron and Helleniq Energy is set to implement a comprehensive three-phase exploration program. The primary goal of this program is to thoroughly assess the hydrocarbon potential inherent in these designated areas. These developments with the recent request for a 70% stake in a Greek offshore exploration block highlights Chevron’s intention to expand its overseas operations.

A document outlining the agenda indicates that the European Commission’s Cyprus Presidency will raise the issue of indigenous gas resources as a potential mechanism for collective price stability across the Union. This comes at a time when the bloc is grappling with an ongoing energy crisis, exacerbated by market disruptions following Russia’s withdrawal from the European market in 2022 and volatility in the global liquefied natural gas (LNG) market, particularly due to recent geopolitical tensions.

While the EU has made significant strides in reducing its reliance on Russian gas, transitioning from 45% to approximately 12% since the conflict in Ukraine began, the bloc’s exposure to the global LNG market’s fluctuations has become more pronounced. The document poses a direct question to ministers: “Given the current price shocks and the volatility of the global LNG market, how do you see the role of indigenous gas resources as a collective mechanism for price stability across the Union?” This highlights the immediate challenge posed by higher energy costs, which have already added an estimated €24 billion to EU import expenditures.

Despite the EU’s stated climate ambitions, with a continued focus on ending oil and gas drilling, some industry experts and analysts suggest that renewable energy sources alone may not be sufficient to meet energy demands in the near future. Consequently, several member states are reportedly becoming more receptive to expanding their natural gas production capabilities.

Examples of existing domestic gas potential within the EU include Romania’s Neptun Deep project, which has been extracting gas from the Black Sea since March 2025. Greece has initiated its first offshore exploratory drilling campaign for natural gas in nearly four decades, with operations targeting potential reserves in the Ionian Sea slated to commence in early 2027. Italy is also considering the revival of offshore oil and gas exploration projects that were previously suspended. Other noted areas of potential include Poland’s developments in the Baltic Sea and wider cooperation in the North Sea.

Croatia recently finalized an agreement to enhance gas pipelines and energy infrastructure across the Balkan region. Furthermore, industry assessments suggest that Cyprus possesses significant untapped reserves, with geological data indicating approximately 324.1 billion cubic metres of gas, a volume comparable to the EU’s average annual consumption. The conversation around increased domestic gas drilling is occurring alongside efforts to secure energy supplies amidst surging prices.

However, the prospect of expanded gas drilling has also drawn criticism from environmental organizations. Climate Action Network Europe has called for the adoption of a binding annual target to reduce gas demand by 7%. Industry representatives, meanwhile, emphasize the continued importance of gas in Europe’s energy mix, particularly for ensuring security of supply, maintaining system flexibility, and supporting industrial competitiveness during the ongoing green transition.

Andreas Guth, secretary-general of Eurogas, stated that “Ensuring Europe’s strategic autonomy will require a diversified energy mix, including domestic natural gas production alongside the accelerated scale-up of both domestic and imported renewable and low-carbon gases such as biomethane and hydrogen.”

He also stressed the importance of adapting and repurposing existing infrastructure to safeguard long-term investments while progressing towards climate neutrality.

EU leaders have consistently encouraged households and businesses to conserve energy, while also asserting that Europe’s long-term energy independence hinges on the expansion of domestic renewable power generation. Nevertheless, experts acknowledge that the full integration of renewable sources like wind and solar power necessitates substantial investments in grid upgrades and large-scale energy storage infrastructure, a process projected to span several years and require trillions of euros. Energy Commissioner Dan Jørgensen remarked in March that “In the short and medium term, we will still need quite a lot of gas, and that need has only increased with our decision to phase out Russian gas.” The discussion on domestic gas drilling aims to balance these immediate needs with long-term energy strategy.

The Druzhba pipeline has emerged as one of Europe’s most politically sensitive energy corridors following a Russian drone strike that damaged infrastructure in western Ukraine, halting Russian oil supplies to Hungary and Slovakia. The disruption underscored the strategic importance of the Druzhba pipeline for regional energy security.

Developments around the Druzhba pipeline coincided with political progress in Brussels, where EU ambassadors approved a financial package intended to support Ukraine.  The EU had agreed to the loan last ⁠year to maintain Ukraine’s liquidity through 2026 and 2027, but approval had been delayed after Hungary’s Prime Minister Viktor Orban and the Slovak government blocked it. Both governments accused Ukraine of slowing repairs to the pipeline, an allegation Kyiv denied. Hungary and Slovakia remain heavily dependent on Russian oil, and Orban has consistently shown support for Russia, making the Druzhba pipeline a focal point in broader geopolitical tensions.

The situation shifted after Hungary’s parliamentary election on 12th April 2026, when Viktor Orban lost power. The leader of the ⁠winning party, Peter Magyar, has said he will no ‌longer block the EU funds for Kyiv, though he is only expected ⁠to take power next month. Meanwhile, the Druzhba pipeline retains significant capacity, ranging from 1.2 million to 1.4 million barrels of oil a day, with potential to increase to 2 million barrels. However, actual flows have dropped sharply due to Western sanctions and repeated disruptions linked to drone attacks, limiting its operational output.

Separately, Germany confirmed that ⁠no Kazakh crude would be delivered to its PCK Schwedt refinery from May 2026. This follows reports from industry sources that Russia was preparing to halt Kazakhstan’s oil exports via the Druzhba pipeline, adding another layer of uncertainty to an already strained supply route. The developments highlight the continuing volatility surrounding the Druzhba pipeline and its role in Europe’s evolving energy landscape.