Gazprom Neft begins construction of a deep conversion complex at the Pančevo Refinery, Serbia

 

The project is a key part of the second phase of a major programme which Gazprom Neft has been executing since 2009 to modernise the refining capacity at NIS. Total investment in this new project exceeds €300 million, making it currently the largest investment project in Serbia. The project is expected to be completed in 2019.

 

With capacity of 2,000 tonnes per day, commissioning the facility will allow conversion rate – a key indicator of a refinery’s operational efficiency – to reach 99.2 percent. Moreover, the refinery’s production of high-quality diesel fuel will increase by more than 38 percent. As part of this project, NIS will commence production of petroleum coke (“pet coke”) which is currently not produced in Serbia. Once the complex becomes operational, the refinery will cease the production of high-sulphur fuel oil (mazut), which will result not only in improved environmental performance, but will also enable Serbia to meet its international obligations in limiting the use of high-sulphur fuels.

Alexander Dyukov, CEO of Gazprom Neft, commented: "The commissioning of this production complex at the Pančevo oil refinery will make it possible to achieve a record

conversion rate of more than 99 percent. By introducing cutting-edge technological solutions, Gazprom Neft is striving to bring the group's refineries up to the highest standards globally in terms of conversion rate, energy efficiency and environmental friendliness. Modernising the oil refining complex is a key strategic objective for us, on the successful implementation of which the overall efficiency of our business largely depends. Under the unstable conditions of today’s energy market, this is becoming a key factor in competitiveness.”