Croatia: Gazprom 200MEUR Romania-Serbia new pipeline will exclude JANAF oil supply route

Published on 10. September 2013., SEE Energy News

Gazprom plans to build a 320 kilometer pipeline that will connect the Romanian port of Constanta on the Black Sea and GazpromNeft NIS’s refinery in Pancevo.Gazprom pipeline should be built in cooperation with the Romanian pipeline operator Conpet.

The feasibility study should be completed shortly, and talks between Gazprom and Conpet are quite intensive. The project was conceived as an extension of the existing pipeline that connects Constanta and Pitesti, with a branching path of 320 kilometers to the NIS refinery. 280 km out of that pipeline should be built in Romania, and the investment is estimated at EUR 200 million.

This news should be viewed in light of the fact that the income of JANAF(Adriatic Croatia-Bosnia oil pipeline network) largely depend on the oil transport for the needs of Pancevo Refinery, which is the main supply route. If the pipeline is built, JANAF revenues will be significantly reduced. Sisak refineries processes less and less, oil refinery in Brod has not been modernized, and the Pancevo refinery turns from year to year orders over Omišlja. Only in first six months JANAF oil transportation revenues amounted to 142.3 million, and make up 67% of total company revenue.

Source; Serbia Energy See desk