Serbian President & Gazprom Boss open new NIS deep conversion complex

ENERGY & UTILITIES

The President of Serbia and CEO of Gazprom Neft have officially inaugurated a new deep refining complex at the NIS oil refinery in Pančevo.

The new facility, which is part of a €300 million modernisation project, will boost motor fuel production at the plant and begin producing petroleum coke for the first time in Serbia.

Petroleum coke is in high demand, particularly among the metals and construction sectors, and previously had to be imported. NIS said in a press release that production at the facility will "will more than cover demand for this product in Serbia, and enable exports to other countries in the Balkan region."

The launch of the deep refining complex also heralded the end of production of heavy fuel oil - known to be extremely harmful to the environment -at Pančevo, which NIS said will lead to an overall reduction of the site's environmental impact.

President of Serbia Aleksandar Vučić heralded the inauguration as an important day for his country and its relationship with Russia.

"Today we have received one of the most advanced refineries in the region. The new facility will help increase the refining depth and fuel production, and further strengthen NIS’ market position. Our collaboration does not stop at this as we plan to further develop it in the years to come," said Vučić.

Gazprom Neft CEO and Chairman, Alexander Dyukov, hailed the project as a successful cooperation between his company and the Serbian government, adding: "NIS is now one of the undisputed leaders in the Balkan region’s energy market — accounting for over 13% of the country’s budgetary revenues and providing more than 11,000 jobs."

NIS, or Naftna Industrija Srbije, is one of Serbia's largest companies. In 2008, Gazprom Neft, a subsidiary of Russian state-owned energy company Gazprom, acquired a majority stake in the company, holding a 56.16% share today, with the Republic of Serbia holding a further 29.87%.

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