23 Oct 2017 16:29

Gazprom Neft starts construction of deep conversion complex at NIS Pancevo refinery in Serbia

MOSCOW. Oct 23 (Interfax) - Gazprom Neft subsidiary in Serbia NIS has started construction of a new deep conversion complex involving delayed coking technology at its Pancevo refinery, Gazprom Neft said in a statement.

The construction project was officially launched by Serbian President Alexander Vucic, and Gazprom Neft CEO Alexander Dyukov.

Total investment in the project exceeds 300 million euros and is due to be completed in 2019. The facility's capacity will be 2,000 tonnes per day. The launch of the complex will allow for the conversion rate to be raised to 99.2% and the refinery's production of high-quality diesel fuel will increase by more than 38%.

"As part of this project, NIS will commence production of petroleum coke which is not currently produced in Serbia. Once the complex becomes operational, the refinery will cease producing high-sulphur fuel oil, 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," the statement said.

The construction of the new complex is part of the second stage of a modernization program of NIS's processing facilities which Gazprom Neft has been implementing since 2009. NIS is one of the biggest vertically integrated energy companies in South-East Europe. Its main activities include exploration, production and processing oil and gas and the production and sale of oil products as well as the implementation of energy projects. The principal shareholders are Gazprom Neft with a 56.15% stake and the Serbian government.