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Gazprom Neft subsidiary NIS invests EUR72 million in modernising production

Gazprom Neft subsidiary Naftna industrija Srbije (NIS) is to modernise the cat-cracking facility at its Pančevo refinery, with the company concluding an agreement with international company Lummus Technology (part of the McDermott Group) on front-end engineering (FEE) on modernising the facility. NIS’ investment in the project will be more than EUR72 million, with works expected to be completed by 2024. Modernising the cat-cracking facility forms part of the Pančevo Refinery development programme being undertaken by the company since 2009.

This project will also include construction of a production facility for high-performance gasoline components. As well as improving the business’ operational efficiency, this modernisation project will also further reduce its environmental impact. The Pančevo Refinery is, today, one of the most modern refineries in this part of Europe, with a maximum annual refining capacity of 4.8 million tonnes. Thanks to the various programmes under its modernisation programme the plant will deliver a refining depth (conversion factor) of 99.2 percent, and completely abandon fuel-oil (mazut) production.

NIS has previous experience of successful cooperation with Lummus Technology, with specialists at both companies having worked together on a key project in the first phase of the Pančevo Refinery’s modernisation — a light hydrocracking and hydrotreatment complex. Construction of a deep oil refining facility, also designed under license from Lummus Technology, is now in its final stage.

Notes for editors

NIS is one of the largest vertically integrated energy companies in south-east Europe. Gazprom Neft holds a 56.16 percent interest in NIS, with the Republic of Serbia holding a further 29.87 percent. The company’s principal activities are in exploration and production, refining, and the sales and distribution of a broad range of petroleum products, as well as the implementation of petrochemical and energy projects. In addition to oil production the company is also developing its own electricity production capacity. NIS owns one of the most modern refineries in the region, located in Pančevo, and a network of filling stations throughout Serbia, Romania, Bulgaria and Bosnia and Herzegovina.

The first stage of the Pančevo Refinery’s modernisation — investment in which totalled EUR500 million — involved the construction of a range of facilities, thanks to which the plant was able to transfer to the production of Euro-5 fuels in 2012, ensuring the energy security of the Republic of Serbia. The refinery secured the approval of the Intergovernmental Panel on Climate Change (IPCC) in 2017, confirming the plant’s production processes as being fully compliant with the most stringent domestic and European standards in environmental protection — the Pančevo Refinery being the first energy complex in the Republic of Serbia to receive such endorsement. The refinery is now continuing the second stage of its modernisation, a key project of which is a deep refining complex (involving delayed coking technology), requiring a total investment of more than EUR300 million.

Lummus Technology, part of the McDermott Group, is a leading licensor of proprietary technologies used in the petrochemical, refining, gasification and gas processing industries. As a company with a more than 100-year history, and with approximately 3,400 patents and applications, Lummus Technology commands some of the most diverse technologies in the industry available to the oil and gas sector.