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Gazprom and Petrohemija to boost Serbia refining and petrochemicals

Gazprom to upgrade NIS Pancevo refinery

The Russian giant JSC Gazprom Neft (Gazprom) is planning to upgrade the Naftna Industria Srbije (NIS) refinery located in Pancevo on the east of Belgrade, Serbia.

Pancevo_Refinery_Petrochemical_Complex_Expansion_MapThe NIS refinery results from a joint venture between Gazprom, the Republic of Serbia (Serbia) and minority stakeholders share the working interests such as:

 – Gazprom 56.15%

 – Serbia 29.87%

 – Minorities 13.98%

In 2009, Gazprom invested $500 million to take this majority stake in the NIS joint venture with the intention to spend $1.3 billion more in capital expenditure to expand and upgrade the Pancevo refinery.

From this amount $700 million have already been engaged for a new hydrocracking unit and hydrotreating unit completed in 2012 and the modernization of the fluid catalytic cracker achieved in 2013 for the production of Euro-5 quality transportation fuels such as gasoline, diesel and jetfuel.

Currently the NIS Pancevo refinery is designed to produce 98,000 barrels per day, but the 2020 strategy is to increase the refining capacity by 100,000 barrels per day (b/d).

Gazprom_NIS_Pancevo_Refinery_ExpansionThis Pancevo refinery expansion will go step by step in respect with the financial capabilities of the NIS joint venture, still in turn-around phase.

For the next step Gazprom is considering to invest in a new deep-conversion reformer with ultra-deep hydrocracking unit and delayed coker that could help Pancevo to accept more competitive heavy crude oil.

After these investments, Gazprom expects the NIS Pancevo refinery to become one of the most efficient in Europe to supply Serbia and to export a large portfolio of products in Balkans by 2020.

HIP-Petrohemija to study Pancevo PolyPropylene

Next to Gazprom NIS Pancevo refinery, the State-owned HIP-Petrohemija (Petrohemija) is studying the construction of a greenfield polypropylene plant at the existing Pancevo petrochemical complex in Serbia.

In 1999, the Petrohemija Pancevo complex had been severely damaged by the Nato forces bombing.

HIP-Petrohemija_Pancevo_Polypropylene_ProjectSince the Yugoslavia war, Petrohemija is investing to restore, revamp and upgrade Pancevo petrochemical complex.

In the period 2009 to 2013, Petrohemija managed to increase capacity in the ethylene, high density polyethylene (HDPE) and low density polyethylene (LDPE) facilities.

For the period 2014 to 2030 Petrohemija agreed on a strategic development program to continue to increase capacities and modernize the existing production units on Pancevo complex.

With NIS Pancevo refinery additional capacity, Petrohemija prioritized the production of polypropylene with this first Pancevo petrochemical expansion.

Petrohemija and the local authorities signed an agreement on the existing site extension where should be located Pancevo polypropylene unit.

With budgeted $120 million capital expenditure, Petrohemija is starting the feasibility study for this greenfield Pancevo polypropylene that should start first commercial operation by 2018.

For more information about oil and gas and petrochemical projects go to Project Smart Explorer


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