Serbia’s NIS starts up new processing complex at Pančevo refinery

Serbia’s Naftna Industrija Srbije (NIS) JSC Novi Sad has commissioned its long-planned deep conversion, or bottom-of-the barrel (BOTB), complex as part of the operator’s second-stage modernization program to improve energy efficiency, boost production of higher-quality products, and ensure operational reliability at its 4.8-million tonnes/year refinery at Pančevo (OGJ Online, Oct. 25, 2017; Mar. 16, 2015).

Launched on Nov. 18, the more than €300-million BOTB complex—which includes a new delayed coking unit equipped with proprietary process technology from Chevron Lummus Global LLC—will increase the refinery’s annual production of Euro 5-quality gasoline and diesel fuels by 2% and 38%, respectively, as well as boost production of LPG by 7%, NIS and majority shareholder PJSC Gazprom Neft (56.16%) said.

Alongside supporting increased production of motor fuels and lifting Pancevo’s overall processing efficiency (conversion rate) to above 99% from 86%, startup of the BOTB complex also enables the refinery’s first ever production of petroleum coke to more than cover Serbia’s domestic demand for the product—which previously had to be imported—as well as allow for exports to other countries in the Balkan region, the companies said.

The new 2,000-tonnes/day BOTB complex also poises the refinery to terminate production of heavy fuel oil (mazut), which will result in improving the manufacturing site’s environmental performance.

“The [BOTB] complex is a key project in the full-scale modernization program at the Pančevo refinery, a program that has already brought the plant’s operating standards up to the level of Europe’s top operators,” said Alexander Dyukov, Gazprom Neft’s chief executive officer and chairman.

“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 [more than] 13% of the country’s budgetary revenues and providing more than 11,000 jobs,” Dyukov added.

In noting the newly commissioned complex will further strengthen NIS’ market position, Serbia’s President Aleksandar Vučić said collaboration between Gazprom Neft and NIS—in which the Republic of Serbia holds  29.87% interest—will remain ongoing to further develop the integrated energy company’s future business.

Startup of Pančevo’s BOTB complex—which completes NIS’ second-stage modernization program—follows the refinery’s more than €540-million Stage 1 modernization initiated in 2009 by Gazprom Neft and wrapped in November 2012 with the site’s shift to exclusive production of Euro 5-standard fuels (OGJ Online, Dec. 17, 2019; Aug. 25, 2014).