GazpromNeft to invest 40MERU into expanding of Serbian oil transport product line’s and regional network expansion for oil transports

, News Serbia Energy

System of product lines’ construction worth 40million Euros is being planned. It will enable cheaper transport of oil derivates from Pančevo refinery.

“Those derivates are designed for domestic requirements, but also for export. Product line Pančevo-Temisoara and connection of Pančevo refinery to Smederevo with this pipes are also planned, said Deputy Minister of Energy Petar Stanojević.

He underlined that there is a possibility to build product line from Belgrade to Niš so Serbian industry can be competitive to Kosovo, Macedonia, South Greece and Bulgaria.

That would solve all logical problems in transport of oil derivates. Fuel export from Pančevo refinery will be simplified and Pančevo refinery will increase scope of derivates production thanks to end of refinery modernization, précised Stanojević.

He reminded that NIS invested 550million Euros in Pančevo refinery and that new investment cycle of around 200million Euros is in the plan. He highlighted that NIS works on improvement of its network in Serbia, but also on spreading of gas stations in BiH, Romania, Bulgaria.

He pointed that oil and gas in Serbia are on minimum, contrary to the production and exploitation increase, and then he announced that he expects research increase in Vojvodina, but also south of Sava and Danube.

NIS shows bigger activity in regional research at the moment, because it works on two research blocks in Romania, Hungary and south of Republic of Srpska, said Stanojević and added that some spectacular success in oil discovery in region should not be expected, only gas production increase can be expected.

Oil production in Serbia has for the first time surpassed production in Croatia, Deputy Minister said and added that consumption of derivates in our country is approximately the same as in Bulgaria or Croatia, which have a half less citizens than Serbia.

He announced that Law for stockpiles will be adopted in February what will enable 180million Euros investments in construction of new and modernization of current oil warehouses in order to increase oil reserves for strategic needs of Serbia.

All countries in region, including Romania which has most reserves, are dependent of oil and gas import, indicated Stanojević and stressed that it is important for Serbia to have several directions of energy supply.

Director of Public Company “Transnafta” Velimir Unković stated that product line system capacity will be around 4million tons of derivates per year, and its length will be about 400km.

Product line construction can increase transport costs several times, increase fuel distribution security, and enable preferred amount of derivates’ supply to certain place whenever it is required, considering the fact that procession scope and export from Pančevo refinery can be increased, Unković stated.

He announced that annual oil transport for Serbian needs should be enlarged because of the expected increase of procession in Pančevo refinery, when he was saying that the transport is about two million tons at the moment.

Unković said that construction of new 20.000 cubic tanks of Pančevo terminal is in the plan since 2014, as well as putting into work of all old tanks for strategic oil reserves’ needs from 2016 to 2017.

Director for Srbijagas’s investments, Jovica Budimir pointed that beside the most important project South Stream worth 1,7billion Euros, interconnection of Serbia with Romania and Bulgaria is in the plan and money for that is insured.

He said that one more construction is planned, gas warehouse “Banatski Itebej”, billion cubic capacity for strategic requirements of Serbia, but also for commercial use of gas behind existing warehouse “Banatski dvor”.

Source Serbia Energy Magazine

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