- Refining & Marketing
New refining complex launched at Gazpromneft’s NIS refinery
A new deep refining complex was launched at the NIS oil refinery in Pančevo, Serbia, by the President of Serbia Aleksandar Vučić and Gazprom Neft CEO Alexander Dyukov.
The new complex will enable the plant to increase production levels of motor fuels, as well as commence production of petroleum coke in Serbia for the first time. The construction of this facility is a key project in the second phase of a major modernisation programme at the NIS refining facilities, total investment in which stands at more than EUR300 million (USD356 million).
Following the launch of the new complex with its delayed coking technology, the conversion rate at the Pančevo refinery will increase to 99.2% — matching the level of the world’s top refineries and significantly surpassing the average in Europe. The complex will also facilitate an increase in annual production volumes of Euro 5 gasoline and diesel fuels by 2% and 38%, respectively, and of LPG by 7%. With the launch of the new deep refining complex, the Pančevo refinery is now set to terminate production of heavy fuel oil (mazut), reducing its overall environmental impact.
The commissioning of this new facility will also see the launch of a new product at the refinery — petroleum coke, a product in high demand among the metallurgy and construction industries, which previously had to be imported into Serbia. Production at the Pančevo refinery will more than cover demand for this product in Serbia, and enable exports to other countries in the Balkan region.
“This is an important day for Serbia and our relationship with Russia, as well as a testament to our effective joint work. Today we have received one of the most advanced refineries in the region. The new facility will help increase the refining depth and fuel production, and further strengthen NIS’ market position. Our collaboration does not stop at this as we plan to further develop it in the years to come,” said Vučić.
The deep refining complex is a key project in the full-scale modernisation programme at the Pančevo refinery, a programme that has already brought the plant’s operating standards up to the level of Europe’s top operators. As a result of the successful cooperation between Gazprom Neft and the Serbian government, NIS is now one of the undisputed leaders in the Balkan region’s energy market — accounting for over 13% of the country’s budgetary revenues and providing more than 11,000 jobs. In spite of the challenging market environment, NIS continues to develop across each business segment — exploration and production, refining, and the retail filling-station network, with a particular focus on maintaining high safety and environmental standards.
NIS (Naftna industrija Srbije) is one of the largest vertically integrated energy companies in southeast Europe. Gazprom Neft holds a 56.16% interest in NIS, with the Republic of Serbia holding 29.87%. NIS owns one of the most cutting-edge oil refineries in the region, located in Pančevo, as well as a network of filling stations operating throughout Serbia, Bulgaria, Bosnia and Herzegovina and Romania under the NIS Petrol and GAZPROM brands. In addition to oil production the company is also developing its own electricity production capacity, and is the most significant fuel supplier in the domestic market, as well as exporting petroleum products throughout the Balkan region.