A commencement ceremony has been held at the Pancevo Refinery (Serbia) to celebrate the launch of construction of a hydrocracking and hydrotreatment complex. The construction was commenced within the frames of Naftna Industrije Srbije’s (NIS) refining capacities modernization. The ceremony was attended by the Prime Minister of the Republic of Serbia Mirko Cvetkovic, Minister of Energy Petar Shkundric, the Russian Ambassador to the Republic of Serbia Alexander Konuzin, Chairman of Gazprom Neft Management Board Alexander Dyukov, NIS CEO Kirill Kravchenko, and other officials.
The construction of the light hydrocracking and hydrotreatment complex at the Pancevo Refinery will enable the plant increase its throughput up to the maximum annual capacity of 4.8 mln tons. Thus, the complex will not only cover local Serbian market requirements but provide conditions for export gasoline supplies to the Balkan states. Following the complex commencement, NIS will produce engine gasolines and eurodiesel with a maximum sulphur content of 10 ppm, which conforms fully to the ecological requirements of EC and Serbia. When the complex achieves its designed capacity, the engine gasoline throughput will arrive at 638 thousand tons per year. Further, the volume of eurodiesel annual production will increase significantly from the actual 230 thousand tons to 1.54 mln tons.
Gazprom Neft’s aggregate investments into the Pancevo Refinery upgrading projects amount to 500 mln euro till 2012. They particularly cover the construction of a refinery-based hydrogen unit, modernization and construction of infrastructural and industrial refinery facilities, and various ecological projects. Construction of the hydrocracking complex alone will require 396 mln euro of the total volume of financing. In accordance with the modernization program, commencement of the complex is scheduled for the third quarter of 2012.
Chairman of Gazprom Neft Management Board Alexander Dyukov stated: “Gazprom Neft is committed to NIS development and expansion of its operations. Construction of the hydrocracking complex at the Pancevo Refinery is one of the steps in this direction. Increasing industrial safety and developing refining technologies while improving product quality up to the European standards including ecological performance progress will enable NIS to rise to the fore at the Balkan regional oil product market”.